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Discounted department store chain Century 21 has filed for Chapter 11 bankruptcy protection and is closing its remaining 13 stores, it announced Thursday, joining dozens of other retailers who were pushed to the brink during the coronovirus epidemic has gone.
It said the decision reduced its insurance providers to pay about $ 21 million, which owes $ 175 million due to policies to protect against losses in the 21st century.
“While insurance money helped us rebuild after suffering the devastating effects of 9/11, we no longer have a viable option, but start to close our beloved family business because our insurers, from whom we Paying significant premiums every year for security. “Unforeseen circumstances like today, we have turned our back on this most important time,” Raymond Gindi, co-CEO of the retailer said in a press release.
The company said that this is a lawsuit in bankruptcy court that is currently pending against several of its insurance providers in New York, the company will be removed for failing to make up for its losses.
The American Property Casualty Insurance Association has said the outbreak of the epidemic is “unimaginable”. Insurance regulators approved exceptions for the virus after the SARS outbreak.
Century 21, known for its great deals on clothing and accessories, opened its first location in New York’s Downtown Manhattan in 1961, and also has locations in New Jersey, Pennsylvania and Florida.
It said commercial sales started at all its stores and online.
Proskauer Rose is serving as legal counsel for Century 21. BRG is its financial advisor, with Brian Cashman as the 21st century chief restructuring officer. Hilco Merchant Resources has the facility to facilitate the sale of merchandise.
Lockdowns and stay-at-home orders aimed at stopping the spread of the Kovid-19 virus forced non-potential retailers like 21st Century to temporarily close their doors. This pain had already felt the industry changing consumer habits. Among the companies that have filed for bankruptcy during the epidemic are Jesse Penney, scaffolding owner Eskena Retail Group, True Religion and Lucky Brands.