Palm Beach Gardens, Florida, United States: Following the US$50 million judgment awarded last month to Jack Nicklaus in his defamation lawsuit against his former company, Nicklaus Companies filed for bankruptcy.

The company announced the move in a news release on its website published on November 21, stating that ‘to protect its employees, clients, and on-going business operations, Nicklaus Companies LLC and its subsidiaries have commenced voluntary chapter 11 cases in the Bankruptcy Court for the District of Delaware’.

According to the filing, Nicklaus Companies listed estimated assets of US$10 million to US$50 million and liabilities of between US$500 million and US$1 billion.

“We take this step to protect our brand, our client relationships, and – most importantly – our employees,” said Phil Cotton, CEO of Nicklaus Companies in a statement. “We are dedicated to protecting the brand and continuing to offer the highest standard of service to our clients all over the world.”

According to the company release, the filing will allow Nicklaus Companies ‘to proactively address its long-term funded indebtedness and other liabilities, as well as a jury verdict returned in a Florida state court last month following a lawsuit filed by company founder and former co-chair Jack Nicklaus’.

Nicklaus Companies says that it has obtained financing that will provide funds to ensure it can continue to operate and that no staff will be affected by the bankruptcy filing.

Cotton said: “We are blessed that many of Nicklaus Companies’ employees and clients have been with the company for decades. 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.”

In a judgement handed down on October 20, a Florida jury awarded damages of US$50 million to Nicklaus against the company that bears his name, which is owned by New York banker Howard Milstein. Jurors did not find Millstein or Nicklaus Companies executive Andrew O’Brien, who also were named individually as defendants, personally liable.

According to the lawsuit, Nicklaus claimed that Milstein, O’Brien and others at the company spread false stories that Nicklaus had considered a US$750 million offer to join the Saudi Arabia-backed LIV Golf League and that he was suffering from dementia and was no longer mentally fit to manage his affairs.

Nicklaus Companies disputes the verdict and has said that it intends to explore options for a potential appeal.

Earlier this year, a New York judge dismissed a lawsuit filed by Nicklaus Companies against Nicklaus that sought to prevent the 18-time Major winner from using his name, image and likeness to promote his golf course design business after he left the company.

Nicklaus and Milstein agreed to a US$145 million deal in 2007 that launched Nicklaus Companies. Milstein acquired a minority stake in the newly formed company that included interests in Nicklaus’ course design, marketing and golf equipment businesses.