The Nicklaus Companies, a business based on the name and business ventures of Jack Nicklaus, has filed for Chapter 11 bankruptcy just weeks after the 18-time major champion won a $50 million defamation judgment against the company.
The company announced the move on November 21, confirming that it had entered voluntary bankruptcy proceedings in the District of Delaware “to protect its employees, customers and ongoing business operations.”
In its filings, Nicklaus listed estimated assets between $10 million and $50 million and liabilities between $500 million and $1 billion.
Chief executive Phil Cotton said the decision was made to safeguard the future of the brand.
“We are taking this step to protect our brand, our customer relationships and, most importantly, our employees,” he said.
“We are committed to protecting the brand and continuing to provide the highest standards of service to our customers around the world.”
The company said the restructuring will allow it to address long-term debt obligations and a recent Florida jury verdict in a lawsuit brought by Nicklaus himself.
The company also confirmed it has secured financing to ensure uninterrupted daily operations and no job losses are expected.
Cotton added: “Our employees have dedicated their careers to the company.
Our dedication is unwavering and everyone can rest assured that we will continue to serve our clients with the spirit of excellence that is the hallmark of our work. “
Florida $50 million verdict
On October 20, a Florida jury awarded Nicklaus $50 million in damages in his defamation case against Nicklaus Co., a company controlled by New York financier Howard Milstein.
The jury did not find Milstein or company executive Andrew O’Brien personally responsible.
Nicklaus claimed that company executives spread false information that he had accepted a $750 million offer to join LIV Golf and that he suffered from dementia and was no longer fit to manage his affairs.
Nicklaus disputed the verdict and said it was considering appeal options.
Long-running legal dispute
The ruling follows a separate legal battle earlier this year in which a New York judge rejected Nicklaus Co.’s attempt to prevent Golden Bear from using his name, image and likeness to promote his golf course design business after he left the company.
Nicklaus and Milstein first joined forces in 2007 to form Nicklaus Corporation for $145 million, with Milstein taking a minority stake in Nicklaus’ course design, marketing and golf equipment businesses.
