The liquidator of Debenhams has cautioned that while significant progress has been made in discussions with unions over the last few weeks, no settlement has yet been agreed.
KPMG said that a number of items have yet to be resolved.
In a statement, it revealed that significant costs are being incurred in the liquidation process "... due to the inability to peacefully vacate stores and realise the stock which is due to pickets and protests".
KPMG added: "The Liquidators' view is that any settlement, should it be agreed, would be self-funding and in the interest of all creditors as the costs being incurred due to the current situation are eroding value and return to the creditors."
It expressed hope that the liquidators could trade two stores, subject to landlord consent, to self-finance a large part of the settlement.
Earlier today there was optimism that an agreement had been reached with the Mandate trade union that would see at least €1m released to pay additional redundancy payments for around 1,000 workers who have lost their jobs.
It was anticipated that the redundancy funds will be generated through the sale of stock, which is currently locked inside the 11 closed Debenhams premises.
Up to now, workers have been picketing the 11 stores.
This has prevented stock being removed from the premises as they demanded enhanced redundancy payments of four weeks per year of service, rather than the minimum two weeks' statutory redundancy entitlement.
It is understood that under the proposed deal, pickets would be removed from the stores and staff would allow stock in the stores to be traded from two as yet unspecified Debenhams stores.
To allow that to happen, the liquidator would make an up-front payment of €500,000 and when the sale of the stock is completed, a further €500,000 would be paid over.
In addition, workers would be entitled to a further 33.3% of any net profit on the sale of stock, and individual workers will get first preference on purchasing the stock.
KPMG has said it will continue to work with the unions, and expressed hope that a settlement was possible.
