U.S. department store chain cutting ties with Nygard in light of sexual assault allegations

A largedepartment store chainwith nearly 300 locations in the U.S.is severing ties with theCanadian fashion company Nygard over recent sexual assault allegations against the company's founder, Peter Nygard.

Dillard's, which operates a chain of luxury department stores,said in a statement Wednesday thatit is cancelling current orders with Nygard International and suspending future ones after 10 women filed a civil class-action lawsuit against Peter Nygard, whofounded the Winnipeg-based fashion company.

The women are accusing the clothing company founderof raping them at his mansion in the Bahamas and operating what they say is a "sex trafficking ring."

"In light of the serious allegations concerning Peter Nygard, which are in direct opposition to our core values, Dillard's has refused current deliveries, cancelled all existing orders and suspended all future purchases from Nygard," Dillard's said in an emailed statement on Wednesday.

According to the Nygard website, thecompany's clothing issold in more than 6,000 department stores. Nygard has 150 of its own stores across North America.

A personal spokesperson announced Tuesday that Peter Nygardwas stepping down as chairman ofhis company and will divest his ownership stakes.

His company's New York City offices were raided by FBI investigators earlier that day, but a bureauspokesperson would not provide further details.

Police in the Bahamas are also investigating allegations made by four women who are part of the class-actionlawsuit, and who have told police Nygard sexually assaulted them when they were younger than 16 the age of consent in the Bahamas.

None of the allegations against Nygard have been proven in court.

CBCNews has contactedNygard Internationalforcomment, but has not yet received a response.

Some Canadian retailers also cutting ties

Dillard's isn't the only company reassessing its relationship with the clothing manufacturer. A few smaller Canadian stores contacted by CBCNews have also said they arecontemplating whether to continue selling Nygard brands, which include Peter Nygard, Nygard Slims, Bianca Nygard, ADX, TanJay, Alia and Allison Daley.

Phinneys, a small store in Kentville, N.S. about 65 kilometres west of Halifax is cutting ties with the brand altogether.

The store isliquidating remaining Nygard inventory and sent a letter cancelling future orders, said Phinneys co-owner Andrew Zebian.

"We believe in women, we support women andwe like to empower them. We're not a judge and jury, but it's our right to pull a brand from our store and tell our customers why. They deserve to know the reason," he said in a written statement to CBCNews.

The store was vocal about its decision, which was announced to customersin a Facebook post last week, although thebrands were popular and often bestsellers.

"There comes a point where you realize it's not about money and you let your conscience decide for you," Zebianwrote.

Nygard's decision to step down from his duties with the company doesn't change his mind, Zebian said.

In Nygard's home province of Manitoba, a store owner says she will never buy or sell his clothes again.

Leona Kemp, the owner of Northern Rainbow's End in Flin Flon, 630kilometres northwest of Winnipeg, says she hasn't carried Nygard brands latelyand won't stock them again in the future.

"Because of the allegations and charges against him, I would never have his product in the store now," she said.

Winnipeg-based North West Company and the University of Manitoba's bookstore are listed as vendors on the Nygard website, but both confirmed they are not currently selling the company's products.

Hudson's Bay also said it hasn't sold anyNygard clothing brands for three years.

Federated Co-op said it doesn't centrally sourceclothing lines, but some local co-ops do.They will make their own decisions whether they will continue to carry Nygard lines in the future, a spokesperson said.

CBC News has contactedCostco, Walmart and Suzanne's, as well as other companies that are listed as vendors on the Nygard website or that have Nygard brands listed for sale on their respective websites. Responses have not yet been received from those companies.