Century 21 files for Chapter 11 blaming insurers

BY Fraser Tennant    

Pointing the blame at its insurers, US department store chain Century 21 has filed for Chapter 11 bankruptcy in order to commence a wind down of its retail operations and maximise its assets for the benefit of shareholders.

The company has 13 stores across New York, New Jersey, Pennsylvania and Florida, having served its customers for nearly 60 years.

Reportedly, the decision to file for bankruptcy follows nonpayment by the company's insurance providers of approximately $175m due under policies put in place to protect against losses stemming from business interruption, such as that experienced as a direct result of the coronavirus (COVID-19) pandemic.

Concurrently, Century 21 has filed a lawsuit against several of its insurance providers based on their decision not to compensate the company for losses under the policies.

"We have no viable alternative but to begin the closure of our beloved family business because our insurers, to whom we have paid significant premiums every year for protection against unforeseen circumstances, have turned their backs on us at this most critical time," said Raymond Gindi, co-chief executive of Century 21. "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, in hopes of another incredible recovery."

A pioneer and leader in high-end, off-price fashion retail since 1961, Century 21 offers men's, women's, and children's apparel, footwear, outerwear, lingerie and accessories, along with beauty and home goods,

"While we wish that Century 21 could continue to be a must-see shopping destination for so many, we are proud of the pioneering role it has played in off-price retail and the iconic brand it has become,” said IG Gindi, co-chief executive of Century 21. “It has been a true honour for us to be part of the vibrant New York City fashion scene and to serve millions of locals, tourists and celebrities, side by side."

Century 21 stores are currently open to serve customers, with going out of business sales commencing at all of its locations and at c21stores.com.

Mr Raymond Gindi concluded, "We will be forever grateful for the vital role our customers played in building the Century 21 legacy hand in hand with our family. Together, we hope we can help our loyal customers create some final memorable Century 21 stories."

News: Century 21 to close up shop, says insurers won't cover COVID losses

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