Department store Century 21 files for bankruptcy, will shut down
Off-price retailer blames shutdown on lack of insurance payout
The company had “no viable alternative” to shutting down after its insurance providers failed to pay some $175 million Century 21 claims it’s owed under business interruption policies, Co-Chief Executive Officer Raymond Gindi said in the statement.
The insurance companies “turned their backs on us at this most critical time,” Gindi said. “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.”
Disputes over business interruption insurance have been landing in court in droves, with insurers contending that pandemics aren’t covered. More than 1,100 insurance lawsuits tied to COVID-19 have been filed nationwide, according to data compiled by law firm Hunton Andrews Kurth.