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

The last property associated with the once-ubiquitousNygardfashion 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..

NineNygard companies have been undercourt-appointed receivership since March 18, 2020. They owednearly $50million to approximately 350 creditorsaround the world, including 40 Manitobans, according to the receiver's first report to the court.

The Broadway propertywas 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 from7456302 Manitoba Ltd., which runs Total Flooring, and has been in negotiations with the company formonths.

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

This isthe 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'sWinnipeg 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 lenderWhite Oak Commercial Finance is the only secured Nygard creditorguaranteed to get back its almost $36 million.

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

On Thursday, a lawyer for theNygard companies said thereceiver has the money to settle thatdebt 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'smore than five months ago," said Winnipeg lawyer Wayne Onchulenko.

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

"If there's an order to pay us off in full that would be great," said White Oaklawyer 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 Nygardwho has said in court filingshe is a consultant for the Nygard Group and sole owner of Nygard Enterprises Ltd. has been indicted on ninecharges in the U.S. for allegations he sexually assaulted women and girls over a 25-year periodin Canada, the U.S. and the Bahamas.

Nygard remains in custody at the Headingley Correctional Centre, facingextradition to the U.S. a process that could takebetween twoand 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 bailapplication 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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