Iconic New York retailer Century 21 will go out of business, citing the refusal of its insurers to cover its pandemic-related losses.
The company said in a statement Thursday it would file for Chapter 11 bankruptcy protection close its last 13 stores in New York, New Jersey, Pennsylvania and Florida.
The problem, the retailer said, was insurers not paying out $175 million in proceeds under business interruption policies. A pending lawsuit against those insurers will now move to bankruptcy court.
"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," co-CEO Raymond Gindi said in a statement.
The company started in 1961 with a store in downtown Manhattan.