Winnipeg fashion mogul Peter Nygard is stepping down as chairman of his company following an FBI raid on his Manhattan headquarters over sex assault allegations.

A company spokesman says Nygard's priority is the welfare of the thousands of Nygard employees, retail partners, loyal customers, vendors, suppliers and business partners.

The FBI searched the designer's offices yesterday, less than two weeks after 10 women filed a lawsuit accusing Nygard of enticing young and impoverished women to his estate in the Bahamas with cash and promises of modelling opportunities.

Nygard has denied the allegations, says he welcomes the federal investigation, notes he has not been charged and says expects his name to be cleared.

Nygard International began in Winnipeg as a sportswear manufacturer and its retail division has more than 170 stores in North America.