Century 21 Stores, an iconic New York department store chain with discounted prices, filed for bankruptcy with plans to close, becoming the latest victim of the retail industry carnage that accelerated during the pandemic.
The retailer will keep sales out of business at its 13 stores in New York, New Jersey, Pennsylvania and Florida, according to a company statement. The company listed assets and liabilities of up to $ 500 million each in its bankruptcy petition filed Thursday.
The company had “no viable alternative” to closure after its insurance providers failed to pay about $ 175 million in claims from Century 21 that it owes under business interruption policies, co-CEO Raymond Gindi said in the statement. .
Insurance companies “turned their backs on us at this critical time,” Gindi said. “While retailers in general have suffered greatly from Covid-19, and Century 21 is no exception, we are confident that if we had received a significant portion of the insurance proceeds, we would have been able to save thousands of jobs and weather the storm. . “
Disputes over business interruption insurance have come to court in droves, with insurers claiming pandemics are not covered. More than 1,100 insurance lawsuits linked to Covid-19 have been filed across the country, according to data compiled by the Hunton Andrews Kurth law firm.
Century 21 has sued several of its insurance providers for failure to pay, the company said. It will take that lawsuit to bankruptcy court and seek a speedy judgment, according to the statement.
The bankruptcy case is Century 21 Department Stores LLC, 20-12097, United States Bankruptcy Court for the Southern District of New York (Manhattan).
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