Fashion Designer Arranges New Credit; Showrooms Reopen
PHILADELPHIA (AP) _ Fashion designer Albert Nipon and his bankers have settled a $10.5 million dispute that abruptly closed the company’s headquarters and four showrooms, company officials said.
″The banks are happy. I’m happy,″ Nipon said.
Nipon’s Philadelphia headquarters and sales showrooms in New York, Atlanta, San Francisco and Dallas were closed last week after a consortium of banks tried to call in the loan, accusing Nipon of violating terms of the agreement.
The Philadelphia headquarters, which employs about 270 people, and the showrooms, which employ an additional 100 workers, reopened and were operating at full capacity by Monday, Nipon said.
The banks filed a complaint in Montgomery County Common Pleas Court to collect a $1 million bond that Nipon and his wife and partner, Pearl, guaranteed to secure the loan.
The complaint charged that Nipon provided the banks false or misleading information and that the company’s financial situation had changed.
A new line of credit has been arranged with a banking consortium that includes two banks from the original group and a new bank, Nipon said.
Nipon, who was released from federal prison in January after serving 20 months for bribing an Internal Revnue Service agent, said the dispute with the banks was caused by his company’s poor finanacial condition last year. The company incurred a loss largely because of his absence as head of the family- owned business, he said.
The company made timely payments but exceeded the loss provision of the agreement, said Tom Foley, the company’s chief financial officer.