Peter Nygård, a Finnish-Canadian businessman who has been the subject of accusations of rape and abuse, has been set up for reorganization, says Helsingin Sanomat. The information comes from a statement sent to Nygård's spokesman on Tuesday.
The statement said that Nygård's business had run into serious difficulties following allegations against Nygård.
"The creditor, inexplicably, refused to wait a few extra days to secure a new credit, but instead took aggressive action that threatened the very existence of the company and its thousands of employees, retail customers, vendors and suppliers," the statement said.
Peter Nygård reorganized his company.
Photo: Jaakko Avikainen / STT-Leht Picture
At the end of February, it was reported that the FBI had been raided by the US Central Criminal Police together with New York police at the Nygård Company headquarters in Manhattan. At the same time, Nygård announced his resignation as Chairman of the Board of Directors of his companies.
Read more: Video: This looks like the FBI raided Peter Nygård's corporate headquarters
In mid-February, a civil suit was filed against Nygård in the United States, in which ten women are accused of rape by a clothing company. The youngest women say they were 14 and 15 at the time of the alleged events.
No criminal charges have been filed against Nygård, but an FBI raid suggests that his actions are being investigated by federal authorities.
Read more: Peter Nygård's fashion empire - a Finnish-born entrepreneur led by a billion-dollar business in the midst of rape accusations
Nygård has denied all allegations and said he had been the target of a defamation campaign. In particular, he has accused his Bahamian neighbor, billionaire Louis Bacon, of fabricating allegations.
Despite the company reorganization, Nygård's statement emphasized that the company was not in bankruptcy or liquidation.
- A successful merger ensures long-term viability and continuity of the company, the statement said.