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The joint interim liquidators of Debenhams’ Irish KPMG operation are seeking injunctions from the High Court to restrict allegedly illegal actions by former employees and others at any of its 11 stores across the country.
Kieran Wallace and Andrew O’Leary of KPMG are also trying to stop interference with their efforts to take possession of the company’s shares and other assets so that their value can be realized as part of the liquidation.
Lyndon MacCann SC, for the liquidators, told the court that they had no choice but to go to court “reluctantly”, as the situation in several stores had become “critical”, and that if they did not recover stocks, they were risking of not being able to realize its value to creditors.
The liquidators’ request was alleged to have stemmed from allegedly illegal actions by named defendants at Debenhams stores in City Square Shopping Center, Waterford, and Mahon Point Shopping Center, Cork.
They claim that the defendants and other unknown persons have violated the 1990 Labor Relations Act by allegedly engaging in illegal actions to block access to and from the stores, amounting to illegal interference in the liquidation.
The liquidators say there have been “numerous instances” in recent weeks of third parties, many of whom cannot be identified because their faces are covered by masks, interfering with the liquidators and their staff in the performance of their duties.
They allege that the behavior of people who participate in illegal demonstrations in some or all of the company’s stores is causing serious disruption in the orderly closure of the company’s operations, adding that they “strongly believe” that the manner of the demonstrations is illegal on the part of certain former employees and / or members of the public.
The liquidators say that the efforts of their representatives on the ground have failed to persuade those involved to desist from the illegal actions denounced.
Mr. Wallace and Mr. O’Leary say that while they have “little doubt” that some of those involved in the actions are motivated by frustration and anger at the treatment received by the Debenhams group, there is “sadly nothing “that the liquidators can do to meet their demand for an additional dismissal package of some 13 million euros, in addition to the legal rights of dismissal.
In a lengthy affidavit, Mr. Wallace said that what was originally a protest action supported by the Mandate union had “taken on a much more sinister shape in recent weeks.”
However, it was recognized that Mandate, which represents 85% of the workforce, had called for the pickets to be peaceful and did not support illegal industrial action.
Precautionary measures are being requested against three named individuals: Stephen Troy of Fairfield Close, Belvedere Manor, Co Waterford; Denis O’Brien of Sunrise Crescent, Browns Road, Co Waterford and Carole Bridgeman of Meadowpark Lawn, Ballyvolane, Co Cork.
It is alleged that Mr. Troy and Mr. O’Brien were involved in illegal actions at Debenhams’ Waterford store and Ms. Bridgeman was among others who illegally gained access to a store in Cork in early September and refused to go away for several days.
Precautionary measures are also requested against any person acting in concert with them or who has knowledge of the request.
Judge Leonie Reynolds today granted an ex parte request (only one party is represented) for the court order request to be served on short notice. The matter will return to court next Tuesday.
It decided that the defendants should receive “cease and desist” letters before that hearing, adding that the court should be informed if there was consent to the requested orders.
The judge also asked to be informed if the liquidators had knowledge of any protest plan in the Four Courts next week that arises from the request for precautionary measure.
MacCann said they would likely be the last to know, but would inform the court if they learned of such plans.
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