Sale approved for Nygard property on Broadway in Winnipeg, last of 4 sold under receivership

The last property associated with the once-ubiquitous Nygard fashion brand has been sold in Winnipeg.

On Thursday, Manitoba Court of Queen's Bench Justice James Edmond approved the sale of a 22,000-square-foot property at the corner of Broadway and Sherbrook Street belonging to Nygard Properties Ltd..

Nine Nygard companies have been under court-appointed receivership since March 18, 2020. They owed nearly $50 million to approximately 350 creditors around the world, including 40 Manitobans, according to the receiver's first report to the court. 

The Broadway property was listed for just under $2.5 million in April, but the price was reduced to $2.35 million in August, after no offers were received. The receiver, Richter Advisory Group Inc., said it subsequently received an offer from 7456302 Manitoba Ltd., which runs Total Flooring, and has been in negotiations with the company for months.

The final purchase price is sealed in case the sale, which is set to close in 30 days, falls through.

This is the fourth and final property owned by the Nygard companies to be sold off under the receivership. Justice Edmond previously approved the sales of a Nygard property on Winnipeg's Notre Dame Avenue, the company's Winnipeg headquarters on Inkster Boulevard, and the company's Toronto headquarters.

Unlike the three previous sales, the Nygard companies did not oppose the Broadway property sale.

American lender White Oak Commercial Finance is the only secured Nygard creditor guaranteed to get back its almost $36 million.

In the receiver's 10th report, dated Jan. 21, 2021, Richter said the White Oak debt is essentially paid, but for about $300-thousand.

On Thursday, a lawyer for the Nygard companies said the receiver has the money to settle that debt and asked the court to do so without further delay.

"We have known that there has been enough money to pay the secured creditor right out since August … so that's more than five months ago," said Winnipeg lawyer Wayne Onchulenko.

Every month that goes by, the Nygard companies get hit with added costs and penalties related to the White Oak debt, he said.

"If there's an order to pay us off in full that would be great," said White Oak lawyer Jeremy Dacks.

Onchulenko added that one of his clients, Nygard International Partnership, is likely one of the largest unsecured creditors in the receivership, and that that company hopes to recoup some of the money it's owed as soon as the White Oak debt is settled.

In proceedings separate from the receivership, Peter Nygard — who has said in court filings he is a consultant for the Nygard Group and sole owner of Nygard Enterprises Ltd. — has been indicted on nine charges in the U.S. for allegations he sexually assaulted women and girls over a 25-year period in Canada, the U.S. and the Bahamas. 

Nygard remains in custody at the Headingley Correctional Centre, facing extradition to the U.S. — a process that could take between two and 10 years. 

At a bail hearing on Thursday, Nygard's criminal defence lawyers argued their 79-year-old client could die if he contracts COVID-19 in jail, and should be released. A judge will give her decision on the bail application Feb. 5.

Nygard has consistently denied the allegations and says they are fabrications as part of a conspiracy to malign his reputation.

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