Century 21 has filed for bankruptcy and plans to shut down all of its stores, the company announced Thursday.
In a statement, the department store best known for its discount designer deals said it had “no viable alternative” after it did not receive the $175m the company had filed for under its business interruption insurance amid the coronavirus pandemic.
“While insurance money helped us to rebuild after suffering the devastating impact of 9/11, we now 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 like we are experiencing today, have turned their backs on us at this most critical time,” co-CEO Raymond Gindi said.
He added: "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, in hopes of another incredible recovery."
The company, which voluntarily filed for Chapter 11 bankruptcy, added it would be suing several of its insurance providers over the failure to pay.
As it prepares to close its remaining 13 stores in New York, New Jersey, Pennsylvania and Florida, the retailer will be having going-out-of-business sales.
Century 21 opened its first store in 1961 in downtown Manhattan, New York, before later opening additional locations in the tri-state area and Florida.
“Since 1961, when Al and Sonny Gindi opened what was then a small store in downtown Manhattan, we have been proud to provide shoppers with unmatched access to designer brands at amazing prices,” Gindi said. "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. 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."
The department store is the latest company to file for bankruptcy after the coronavirus pandemic forced retailers across the country to temporarily close. It joins retailers including JC Penney, Neiman Marcus, Lord & Taylor and Lucky Brand.
