Nicklaus Companies, the business built around Jack Nicklaus’s name and commercial ventures, has filed for Chapter 11 bankruptcy just weeks after the 18-time major champion won a $50 million defamation judgment against the firm.
The company announced the move on 21 November, confirming it had entered voluntary bankruptcy proceedings in the District of Delaware “to protect its employees, clients, and ongoing business operations”.
In its filing, Nicklaus Companies listed estimated assets of between $10m and $50m, set against liabilities in the region of $500m to $1bn.
Chief executive Phil Cotton said the decision was taken to safeguard the future of the brand.
“We take this step to protect our brand, our client relationships, and – most importantly – our employees,” he said.
“We are dedicated to protecting the brand and continuing to offer the highest standard of service to our clients all over the world.”
The company stated the restructuring will allow it to address long-term debt obligations and the recent jury verdict in Florida arising from a lawsuit filed by Nicklaus himself.
It also confirmed it has secured financing to ensure day-to-day operations continue uninterrupted, with no job losses anticipated.
Cotton added: “Our employees have devoted their professional lives to the company.
Our dedication is unwavering, and everyone can be assured we will continue to serve our clients with the devotion to excellence that is the hallmark of our work.”
The $50m Florida Verdict
On 20 October, a Florida jury awarded Nicklaus $50m in damages in his defamation case against Nicklaus Companies, which is controlled by New York financier Howard Millstein.
The jury did not find Millstein or company executive Andrew O’Brien personally liable.
Nicklaus had alleged that senior figures at the company circulated false claims that he had entertained a $750m offer to join LIV Golf and that he was suffering from dementia and no longer fit to manage his own affairs.
Nicklaus Companies has disputed the verdict and says it is considering its options for appeal.
Long-Running Legal Disputes
The verdict followed a separate legal battle earlier this year, in which a New York judge dismissed an attempt by Nicklaus Companies to stop the Golden Bear from using his own name, image and likeness to promote his golf course design ventures after leaving the firm.
Nicklaus and Millstein first joined forces in 2007 in a $145m deal that established Nicklaus Companies, with Millstein taking a minority stake across Nicklaus’s course design, marketing and golf equipment businesses.
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