A key element of its bankruptcy, according to the company, was its insurers' failure to help it through the COVID-19 crisis. , the company said it was forced to file for bankruptcy because it was not paid $175 million it said was due under insurance policies "put in place to protect against losses stemming from business interruption such as that experienced as a direct result of the COVID-19 pandemic.
A Century 21 store located across the street from the World Trade Center remained closed for nearly six months and Gindi continued: "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.
"Unless a policy is drafted in a certain way, they will deny coverage across the board," Rattet said. "They figure that if the [insurance] industry allowed coverage under force majeure provisions, the industry would go bankrupt."