Judge approves sale of Nygard’s Winnipeg warehouse

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This article was published 19/11/2020 (1756 days ago), so information in it may no longer be current.

A judge has given the green light for the sale of Peter Nygard’s Inkster Boulevard warehouse, one more step in the dissolution of the fallen mogul’s fashion empire.

Manitoba Court of Queen’s Bench Justice James Edmond authorized the sale proposal by court-appointed receiver Richter Advisory Group on Thursday.

The purchase by Eighth Avenue Acquisitions is to be finalized within 60 days.

A judge’s approval is necessary for the sale of any property in a receivership proceeding valued over $250,000.

Realtor Colliers International listed the 8.6-acre property for $8.5 million, describing the sale price as “significantly below replacement cost.”

Edmond said Richter made a “sufficient effort” to secure the best price for the property and that the marketing process was “commercially fair and reasonable.”

“After considering all the applicable criteria, I conclude the transaction should be approved as requested by the receiver,” he said.

The court had approved the sale of Nygard’s 25,000-square foot Notre Dame Avenue facility and a flagship store in Toronto.

The Nygard Group of Companies was placed in receivership in March, after creditors White Oak Commercial Finance LLC and Second Avenue Capital Partners LLC sought repayment of a US$25-million loan.

The proposed sale price remains sealed by court order until the sale is finalized.

Nygard lawyers opposed the sale of the Inkster Boulevard facility, arguing the sale of the other two properties satisfied its debt to White Oak and Second Avenue, and that Richter’s continued occupation of the Inkster property amounted to trespassing.

Nygard lawyers argued Richter’s work is done and that the receiver should be discharged as the Nygard Group prepares a bankruptcy proposal for a new proposal trustee.

Edmond said “there are still a number of matters” Richter has to address and debtors to satisfy before it can be discharged.

“The receiver is authorized to market and sell the Inkster property to satisfy the lenders’ debt,” he said.” The receiver is fulfilling its duties as a court-appointed officer. The receiver is neither a trespasser, nor is its conduct wrongful or illegal in the circumstances.”

dean.pritchard@freepress.mb.ca