Century 21, Files for bankruptcy and is looking forward to shutting down all its stores soon. The New York Departmental Store Chain has more than 13 stores, mostly in the NYC and surrounding metropolitan areas. The company employees around 1,400 employees beneath its name and claims lacking payment on insurance is the cause of end.
Although, departmental stores ave been losing their values and worth from the very first when online e-commerce emerged. But at present, things are getting more worst as the world is hit by the global COVID Pandemic. People are preferring not to move out as it can cause them to be attacked by the fatal virus. The preference is given to Online Shopping instead of going and buying it.
The store that had everything available was a hit once
The chains of this franchise were popular because of their discounts and offer all at affordable prices. But the emergence of Outbreak leads to the downfalls of their business too. People are working from their homes particularly, demands for clothes have gradually decreased as it was before.
Many departmental stores have filed for Bankruptcy and have announced their soon closures. Some of them are-JC Penny, Neiman Marcus, Lord Taylor. While Lord And Taylor have even their plans for their shutting down too.
As stated by Century 21- They have to shut down because they were unable to receive the $175 million for the business interruption they are facing due to the occurrence of the pandemic. It had similar conditions 19 years ago when the terrorist attack of 9/11 took place but fortunately, payments saved them, but fortune seeks not to be with them this time.
21 Century store CEO Raymond Grandi stated- ” That they had no alternative left to save their business but have finally decided for the closure of their beloved family business as the insurers have turned their back on the most stirring and critical times. It is not just the many people across the country who are suing their insurers for the same reasons. Losses forced by pandemic are not included in Insurance- state by IGTIII. Physical damage is needed to get an insurance cover.