Century 21 discount stores files for bankruptcy, blames insurers for not paying business interruption claim

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Century 21 is the latest discount retailer chain to file for Chapter 11 bankruptcy. 

Raymond Gindi, co-CEO of Century 21, announced that the discount retailer will be holding a going-out-of-business sale on its website and in its 13 stores located in New York, Pennsylvania, New Jersey, and Florida. 

The company filed for Chapter11 bankruptcy in the Southern District of New York on Thursday. It listed assets and liabilities of as much as $500 million each in its bankruptcy petition.

Century 21 blames its insurance companies’ refusal to pay its “business interruption”  claim worth around $175 million. 

“While insurance money helped us to rebuild after suffering the devastating impact of 9/11, we now have no viable alternative, but to begin the closure of our beloved family business because our insurers, to whom we have paid significant premiums, every year, for protection against unforeseen circumstances like we are experiencing today, have turned their backs on us at this most critical time,” said Gindi in a statement.