THE BOUT CONTINUES: One day after a Manitoba court judge approved the liquidation of Nygård’s retail properties, lawyers for Peter Nygård filed a motion to amend his racketeering complaint against Louis Bacon.
Nygård and Bacon own neighboring properties in Lyford Cay, an affluent enclave in the Bahamas. The titans initially crossed swords over a property dispute and have battled for decades in and out of court. Nygård’s legal problems include a complaint filed by 46 unidentified women alleging rape and sex trafficking.
In March, a group of companies owned by Nygård went into receivership and are under the control of the Richter Advisory Group. On Wednesday, Manitoba’s Court of Queen’s Bench approved the liquidation sale of assets and inventory belonging to Nygard at a date to be determined. The Nygård chain had 169 retail outposts and 1,450 employees at one time.
The company’s business has dwindled over time, due partially to the allegations against its namesake. After the Federal Bureau of Investigation and other law enforcement agencies raided Nygård’s Times Square offices in Manhattan and his California home as part of the sexual assault investigation in February, Dillard’s announced it would no longer carry the moderate sportswear label. As of Friday, the retailer still had some Nygård clothing available online.
A Dillard’s spokeswoman did not respond immediately to a request for comment.
Nygård’s motion to amend the racketeering case against Bacon was filed in the U.S. District Court for the Southern District of New York. The motion alleges that, through the nonprofit Sanctuary, Bacon and his brother Zack provided financial support to women who disparaged Nygård. It also claims that Zack Bacon, who works with his brother at Moore Capital Management, said in a recording provided to The New York Times that he intended “to take advantage of the #MeToo movement to destroy Peter Nygård in the press and to start a class action lawsuit against him using the most aggressive lawyers in the world.”
Both Louis and Zack Bacon declined comment through a spokesman on Friday.
There are also numerous allegations that Bacon and others working on his behalf interfered with Nygård’s business relationships, including the opportunities to sell his fashion brands. Nygård’s latest filing alleges that Bacon’s wrongful conduct has resulted in the apparel magnate’s prospective and existing business relationships being “tortiously harmed.”
The 145-page motion to amend also cites environmentalist and attorney Robert F. Kennedy Jr., who is also a board member of Save The Bays, the nonprofit that has challenged Nygård about various disputes, for allegedly being aware for many years of Bacon’s desire to destroy and damage Nygård. Kennedy could not be reached immediately for comment Friday.
A spokesman for Nygård said, “Peter Nygård looks forward to clearing his name by exposing the actions of Louis Bacon and his co-conspirators that have destroyed a much-celebrated fashion brand and resulted in more than 1,400 Nygård employees losing their livelihood.”