What started as a hostile takeover bid has ended in a Chapter 11 for the company founded by Jack Nicklaus…
Within weeks of Jack Nicklaus’ successful lawsuit, the company he founded and co-chaired until 2023 has filed for bankruptcy.
The 18-time major champion had accused Howard Milstein and Andrew O’Brien, executives in the Nicklaus Companies, of orchestrating a campaign to damage his reputation in their bid to take control of the business. The pair, Nicklaus alleged, spread false rumors that he had negotiated a $750 million deal with LIV Golf and as a result was no longer in any sound state of mind to manage his affairs.
The rumor was repeated by a number of prominent news organizations, and while Milstein and O’Brien were deemed to not be personally responsible, the jury determined that the Nicklaus Companies were responsible for exposing the now 85-year-old to “ridicule, hatred, mistrust, distrust or contempt”.
Nicklaus was awarded $50 million in damages.
Now, in a move “to protect its employees, clients, and ongoing business operations”, the company has “commenced voluntary chapter 11 cases in the United States Bankruptcy Court for the District of Delaware”.
“Filing for bankruptcy,” the statement continued, “will allow the company to proactively address its long-term funded indebtedness and other liabilities.”
Bloomberg News reported that, according to the filing, Nicklaus Companies listed estimated assets of between $10 million and $50 million, with liabilities of between $50 million and $1 billion.
Phil Cotton, the company’s CEO, said: “We take this step to protect our brand, our client relationships, and – most importantly – our employees.
“We are dedicated to protecting the brand and continuing to offer the highest standard of service to our clients all over the world.”
The statement also noted that the company “disputes the verdict and intends to explore its legal options with respect to an appeal”.
While best known for course design, the Nicklaus Companies also has a range of apparel donning the golfer’s famous Golden Bear logo.
