Manitoba Court approves sale of Nygard company headquarters in Toronto

By | August 10, 2020

Another Nygard property has been sold off as part of a court-ordered receivership to pay back millions in debt.

On Monday, Manitoba Court of Queen’s Bench judge Justice James Edmond approved the sale of 1 Niagara Street in Toronto to NY Brand Studio Inc.

The 24,000-square-foot building had been Nygard’s company headquarters in Toronto since the 1980’s.

The purchase price is confidential and has been sealed by the court, though a real estate listing shows the property, which is in Toronto’s fashion district, was marketed at $23 million.

According to this online listing, 1 Niagara Street was marketed at $23 million. It’s not known what NY Brand Studio Inc. offered to purchase the property. The sale price is sealed by the court and is considered confidential until the deal is finalized. (CBRE.ca)

Nine Nygard companies have been in receivership since March 18 and are still under the control of Richter Advisory Group Inc., after American lenders White Oak Commercial Finance and Second Avenue Capital Partners took them to court to recoup a loan worth more than $25 million US. 

Four properties, including company headquarters in Toronto and Winnipeg were put on the market April 29 to repay that debt.

Notre Dame Avenue property in Winnipeg

In June, Justice Edmond approved the sale of Nygard’s Notre Dame Avenue property in Winnipeg to Mist Holdings Inc. The sale price was deemed confidential and sealed by the court until the deal is finalized. The property had been listed at $5.2 million, but court was told the purchase offer was considerably lower. 

Peter Nygard said in an affidavit that he had been living in an apartment in the building since he moved back to Canada a year-and-a-half ago. He is currently living at his cottage in Falcon Lake, but told the court he had wanted to keep th Notre Dame apartment suite.

In a rare personal affidavit filed in Manitoba’s Court of Queen’s Bench in June, Peter Nygard said he was living in an apartment suite attached to his company’s Notre Dame Avenue warehouse for more than 40 years. (Affidavit of Greg Fenske filed in Manitoba Court of Queen’s Bench)

In his affidavit Nygard said in March he made an offer to rent and/or buy two of the buildings attached to the warehouse on the Notre Dame property that contain his office and residence, but the receiver didn’t accept it.

Fifty-seven women have filed a class action lawsuit against him in the Southern District Court of New York, alleging he sexually assaulted them. Their allegations include rape, sodomy and drugging in locations that include New York, Winnipeg and Nassau, Bahamas, where Nygard lived since the 1970’s.

Nygard vehemently denies those allegations. None have been proven in court and no criminal charges have been laid.

Nygard owes nearly $300k to CRA

According to the receiver’s sixth report to the court, Nygard International Partnership owes the Canada Revenue Agency nearly $300,000 in unpaid GST since March. 

“The CRA asserts these amounts represent property of the Crown held in trust, do not form part of the Property included in this receivership, and must be paid to CRA out of the proceeds of the Property before paying any other creditor,” said the report.

Richter said it has contacted the CRA to arrange for an audit of that claim, and will provide an update to the court.

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