Century 21 Stores Files For Chapter 11 Bankruptcy
Off-price retailer Century 21 Stores announced on Thursday (Sept. 10) that it voluntarily filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of New York. The company said it filed “customary motions” for permission to start going out of business sales and to “uphold its commitments to customers and employees,” according to the announcement.
The discount retailer also announced plans to start a “wind-down” of its operations at 13 retail locations throughout New York, Pennsylvania, Florida and New Jersey. It said the move follows “nonpayment” by its insurance providers of roughly $175 million from policies meant to safeguard from losses arising from business interruption.
“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,” Century 21 Co-CEO Raymond Gindi said in the announcement.
Century 21’s retail locations are open for business, and the company indicated that it will begin its going out of business sales at each store and on its eCommerce website. Additionally, the retailer said it will continue with necessary measures in place to ensure the safety of its shoppers and employees.
Century 21, which is based in New York City, provides a selection of clothing, outerwear, shoes, accessories and lingerie, in addition to beauty and home goods merchandise, at retail locations and online.
In August, discount retailer Stein Mart, Inc. filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Middle District of Florida, Jacksonville division. At the time, the retailer said it was mulling “any and all strategic alternatives,” like the potential sale of its eCommerce operation and related intellectual property.