New York Discount Department Store Century 21 Files for Bankruptcy... All Stores to Close

[Asia Economy New York=Correspondent Baek Jong-min] Century 21, a discount department store chain in the United States, has filed for bankruptcy protection and decided to close all of its stores.

On the 10th (local time), Century 21 filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code at the New York Bankruptcy Court. Century 21 explained that the reason for filing for bankruptcy protection was that insurance companies refused to pay $175 million in business interruption losses despite insurance contracts related to losses caused by the COVID-19 pandemic.

Accordingly, Century 21 plans to close all 13 of its stores in the United States. The number of employees is about 1,300. Century 21 operated stores mainly in the eastern U.S., including Manhattan, New Jersey, and Pennsylvania, selling luxury and fashion products at discounted prices.

Previously, luxury department store Neiman Marcus, the oldest department store Lord & Taylor, and discount department store chain JC Penney had also filed for bankruptcy protection one after another.

CNN reported that Century 21's decision to close all its stores is unusual, given that other department stores that filed for bankruptcy protection earlier are continuing operations.

Century 21 stated that if they do not receive the insurance payout, liquidation is a reasonable decision, and that if they had received the insurance money, they could have saved thousands of jobs.

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