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A judge has approved the sale of embattled fashion mogul Peter Nygard’s Toronto headquarters.
Queen’s Bench Justice James Edmond OK’d the move by receiver Richter Advisory Group on Monday.
The sale price of the 25,000-square-foot facility remains sealed by court order until the move is finalized later this month. The property was put on the market for $23 million.
"The receiver expresses the opinion that the transaction represents the most favourable offer available for the Niagara (Street) property," Edmond said. "The best interests of the parties is served by proceeding as quickly as possible."
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.
Earlier that same month, a class-action lawsuit was filed in the U.S. accusing Nygard of sexual misconduct against dozens of women. Nygard, through his lawyers, has repeatedly maintained his innocence.
A judge’s approval is necessary for the sale of any property in a receivership proceeding valued over $250,000.
"This is certainly good news today in the sense that depending on the precise timing of receipt and closing, it’s most likely the lenders will be able to be paid out," White Oak Capital lawyer Jeremy Dack said.
Sale approval for the Toronto property comes a month after Richter was given the go-ahead to accept Mist Holding Inc.’s offer to purchase Nygard’s Notre Dame Avenue business property.
The 4.6-acre Winnipeg property had been listed for $5.2 million. Court heard the final sales price was well under the list price.
"That sale is in the process of being closed," Richter lawyer Bruce Taylor told court Monday.
Nygard attempted to forestall sale of the Notre Dame property, arguing it housed an apartment that had been his primary residence since returning to Winnipeg from the Bahamas a year-and-a-half ago.
Edmond rejected the move, saying there was no evidence of any tenancy agreement between Nygard and the company that bears his name, noting the property is not zoned for residential use.
Someone once said a journalist is just a reporter in a good suit. Dean Pritchard doesn’t own a good suit. But he knows a good lawsuit.
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