Century 21 Suppliers, an legendary New York off-selling price division store chain, filed for individual bankruptcy with programs to shut down, getting the most up-to-date target of the retail industry carnage which is accelerated all through the pandemic.
The retailer will hold going out of organization sales at its 13 suppliers in New York, New Jersey, Pennsylvania and Florida, in accordance to a organization statement. The organization stated assets and liabilities of as substantially as $500 million every single in its individual bankruptcy petition filed Thursday.
The organization had “no feasible alternative” to shutting down just after its coverage suppliers failed to spend some $175 million Century 21 statements it is owed beneath business interruption guidelines, Co-Chief Government Officer Raymond Gindi reported in the statement.
The insurance policies firms “turned their backs on us at this most significant time,” Gindi mentioned. “While shops across the board have suffered considerably because of to Covid-19, and Century 21 is no exception, we are confident that had we received any meaningful portion of the coverage proceeds, we would have been able to help you save countless numbers of jobs and weather the storm.”
Disputes in excess of small business interruption insurance coverage have been landing in court docket in droves, with insurers contending that pandemics aren’t protected. Much more than 1,100 insurance policies lawsuits tied to Covid-19 have been submitted nationwide, in accordance to info compiled by law organization Hunton Andrews Kurth.
Century 21 has sued a number of of its insurance coverage companies above the failure to spend, the company reported. It’ll move that lawsuit into individual bankruptcy courtroom and request a speedy adjudication, in accordance to the statement.
The personal bankruptcy situation is Century 21 Division Retailers LLC, 20-12097, U.S. Individual bankruptcy Courtroom for the Southern District of New York (Manhattan).
About the photo: WESTBURY, NEW YORK – MARCH 20: A typical look at of a Century 21 division shop indicator as photographed on March 20, 2020 in Westbury, New York. (Photo by Bruce Bennett/Getty Photographs)
Copyright 2020 Bloomberg.
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