Century 21 Files For Bankruptcy, To Close Paramus Store

PARAMUS, NJ — The discount retail chain Century 21 has filed for Chapter 11 bankruptcy, and will begin to "wind down" retail operations at 13 stores, including the Bergen Town Center location in Paramus.

The decision to close stores comes after nonpayment of approximately $175 million from the company's insurance providers, a news release said. According to the company, the policies were in place to protect against losses stemming from business interruption, à la COVID-19.

CEO Raymond Gindi expressed that he feels slighted by the insurance companies Century 21 has worked with.

"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," he said.

"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."

Instead, the company will close its 13 locations across New Jersey, New York, Pennsylvania and Florida.

The company, in addition to filing "voluntarily" for Chapter 11 Bankruptcy, is removing to the bankruptcy court a pending Supreme Court of New York lawsuit against several insurance providers "based on their failure to compensate the Company for its losses under the policies."

Though the stores are closing, they aren't closed yet.

The Company is commencing going out of business sales at all of its locations and at c21stores.com.

Century 21 began in 1961 when Al and Sonny Gindi opened their first store in downtown Manhattan.

"While we wish that Century 21 could continue to be a must-see shopping destination for so many, we are proud of the pioneering role it has played in off-price retail and the iconic brand it has become. It has been a true honor for us to be part of the vibrant New York City fashion scene and to serve millions of locals, tourists, and celebrities, side by side," said co-CEO IG Gindi.

Century 21 is the latest retail chain to file for bankruptcy as the coronavirus continues to wreak havoc on the industry.

Others to file include Mahwah-based Ascena, which owns Ann Taylor, as well as department store chain Lord & Taylor, which announced it would be closing its Paramus location in late August.