Century 21 Files For Bankruptcy, All Stores Closing
Iconic New York department store Century 21 announces all stores are closing as it files for bankruptcy amid the coronavirus pandemic. The retailer reports that they will hold going out of business sales at its 13 stores in New York, New Jersey, Pennsylvania and Florida. The company joins, Lord & Taylor, JC Penny, Neiman Marcus, Barneys, Ture Religion and more, who’ve all filed for bankruptcy and closed stores amid the pandemic.
In the bankruptcy petition, filed today, they’ve listed assets and liabilities of as much as $500 million each, and cite that they had “no viable alternative.” The shutdown is being blamed on insurance providers, who’ve failed to pay some $175 million to Century 21 in what they say is owed under business interruption policies. However, companies are saying pandemics aren’t covered.
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In their statement, Co-Chief Executive Officer Raymond Gindi say the insurance companies “turned their backs on us at this most critical time. While retailers across the board have suffered greatly due to Covid-19, and Century 21 is no exception, we are confident that had we received any meaningful portion of the insurance proceeds, we would have been able to save thousands of jobs and weather the storm.”
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