Off-price retailer Century 21 announced plans to commence a wind down of its retail operations and going out of business sales at its 13 stores across New York, New Jersey, Pennsylvania and Florida after serving customers for nearly 60 years. The company will also file for Chapter 11 bankruptcy. The decision follows accusations by the company of nonpayment by its insurance providers of approximately $175 million.
“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,” said Century 21 co-CEO Raymond Gindi. “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.”
Concurrently, the company is removing to the Bankruptcy Court a lawsuit pending in the Supreme Court of the State of New York against several of its insurance providers based on their failure to compensate the company for its losses under the policies. The company is requesting that the Bankruptcy Court expedite the adjudication of the suit for the benefit of its stakeholders.
“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,” said Gindi. “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 honor 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 company will continue to take necessary precautions to keep its stores safe for customers and employees during the COVID-19 pandemic while they remain open. Sales are also being held online.
“From the bottom of our hearts, we thank all of our dedicated and hardworking team members for their countless contributions, including continuing to give 100% throughout this pandemic to take care of our customers and each other,” Gindi concluded. “We will be forever grateful for the vital role they 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 Stories.”
