21st Century has filed for Chapter 11 bankruptcy to join other department stores including JCPNE, Neiman Marcus and Lord & Taylor.
After offering designer apparel, footwear, cosmetics and décor at discounted prices for nearly 60 years, the chain retailer also announced that it would close all 13 locations in New York, New Jersey, Pennsylvania and Florida. The company said it would start liquidation sales in stores and online.
In a statement obtained by Fox 5 new york, Century 21, said the decision paid about $ 175 million on its business interruption insurance.
“We no longer have a viable option, but start to shut down your beloved family business because our insurers, with whom we have paid unexpected premiums every year for protection in critical situations such as we experience today Are doing, they have their backs on us. Significant time, ”21st-century co-CEO Raymond Guindy said in the statement.
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The department store said it would be able to “weather” the financial storm caused by the coronovirus epidemic, had it received insurance money, claiming it was in arrears.
“While COVID-19 has caused a lot of damage to retailers across the board … we believe we had received a meaningful share of insurance income, we were able to save thousands of jobs and the storm,” gained by Century 21 A statement states CNN Business.
In April, Neiman Marcus became the first major US department store to file for bankruptcy amid the epidemic. Others including JCPenney and Lord and Taylor have since followed suit.
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At the time, David Berliner, partner at the accounting firm BDO, told Forbes At the time when many fashion retailers were struggling before the global health crisis, so “with COVID-19 in the mix, it’s really going to accelerate trends with more store closures and eventual failures.”
He said, “Bottom line, I hope the fewer retail chains left over from COVID-19 and the remaining chains, especially apparel and other mall-based specialty stores, will reduce the number of brick and mortar store locations, ” They said.