Century 21 Discount Store Wanted Chapter 11 bankruptcy protection Thursday and plans to close all of its remaining stores.
The decision to “terminate its retail operations” was made after the company’s insurers failed to pay $175 million owed under policies put in place to protect them from losses resulting from the COVID-19[feminine] pandemic.
Century 21 co-CEO Raymond Gindi said the company’s insurers “turned their backs on us at this most critical time.”
Had the retailer received the funds, Gindi said the company was “confident” it could have “saved thousands of jobs and weathered the storm, hoping for another incredible recovery”.
“While insurance money has helped us rebuild after suffering the devastating impact of 9/11, we now have no viable alternative but to begin closing our beloved family business because our insurers , to whom we have paid significant premiums every year to protect us against unforeseen circumstances like the ones we are experiencing today,” said Gindi.
The company said it would withdraw from bankruptcy court a pending lawsuit in the New York State Supreme Court against several of its insurers “due to their failure to indemnify the company for its losses under fonts,” the company said.
Century 21 wants the bankruptcy court to expedite the judgment of the lawsuit for the benefit of its stakeholders.
The other 13 closed stores are located in New York, New Jersey, Pennsylvania and Florida.