Debenhams liquidator has withdrawn a €1 million proposal agreed with unions last week.
KPMG says the actions of certain people overnight made it clear the offer wasn't acceptable and says it also won't be negotiating any further settlement.
It comes as a number of workers took part in a sit-in at two of the retailers stores in Dublin and Cork this morning in their ongoing dispute over redundancy terms.
6 people were arrested at the Dublin branch on Henry Street.
In a statement, Gardai said "Gardaí attended incidents this morning at Henry Street in Dublin and Patrick Street in Cork.
Six persons have been arrested at Henry Street in Dublin for trespassing under the Public Order Act. An act of Criminal Damage is also being investigated. The six persons were detained at Store Street Garda Station and have been released pending further investigations."
A redundancy package from liquidators KPMG has been withdrawn which workers described as an insult.
In the Dail, Sinn Fein Leader Mary Lou Mc Donald called on Taoiseach Micheal Martin to act on the issue.