New York department store chain Century 21 filed for bankruptcy Thursday and said it will shut down its business.
Century 21 has 13 stores mostly in the New York City and the surrounding metropolitan area. The company blamed the lack of payment on its business interruption insurance as the cause of its demise.
Department store chains large and small were struggling even before the Covid-19 pandemic caused stores to shut temporarily and shift more purchases online. Stores that depended on clothing sales, such as Century 21, have been hit particularly hard as millions of people are out of work and millions more are working from home and not needing to buy as many dress clothes.
But Century 21 said the final straw was the fact that it did not get $175 million it had filed for under its business interruption insurance. It said the policy had saved it in the wake of the September 11 terrorist attacks — it had a store directly across the street from the World Trade Center, which was destroyed. But it said it has not been able to get the payment this time.