Nygard Defaults on Debt Amid Rape, Sex Assault Allegations

Nygard International Partnership defaulted on its $40 million credit line just days after the deal closed, then failed to promptly tell lenders about allegations of rape made against the retailer’s founder, according to court papers.

The Canadian women’s clothing designer and retailer began defaulting “almost immediately” on its revolving credit line from a White Oak Global Advisors LLC unit and Second Avenue Capital Partners dated Dec. 30, according to court papers. The defaults included waiting nearly a week to inform lenders of a lawsuit accusing the firm and its founder, Peter Nygard, of rape and sex trafficking, according to ...