Old dark live action kids movie

I saw this movie in the mid to late 80s I believe.

It was like a Princess Bride/Labyrinth type of movie from what I can remember..

The only part or scene that is still vivid to me, is a scene where two men (possible bad guys) I think they were some woman’s sons and possibly all gypsies or travel like or look like gypsies (this has stood out in my head for years)..

They were in a dark forest and only this tent or carriage or small hut was lighted.. inside the “hut” was a chest or something very important.. I think this movie had some magic or something weird about it.. one of the “bad guys” was wearing a long sleeve stripped black and white shirt under a black vest and  was bald  only on the top with hair on the sides,  and his arms were able to grow I think….

I’m not thinking of Beetlejuice; I’m sure of it.

These two guys were dumb/not very smart.That’s all I remember.  We watched this weird movie a lot as kids,  but I’m lost for what it is.

Please help!

 

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