Century 21 Bankruptcy Post
Century 21 Files Bankruptcy and plans to liquidate
While its not surprising that Century 21 which is a 13 store, off-price, brands based retailer filed for Chapter 11 bankruptcy, it is unusual that from the get-go they announced they are liquidating.
https://nypost.com/2020/09/10/fashion-retailer-century-21-files-for-bankruptcy/
Click below to see a list of their petition and a list of their creditors.
The company is blaming the insurance companies for the collapse. However, it seems clear that Century 21’s future outlook is not promising after the pandemic, even if the company would receive payment from insurance companies. There is a lot of capital available looking for good investment opportunities. Therefore, Century 21 could get resources to keep alive if its business model were promising.
ReplyDeleteIt is hard to believe the co-CEO Raymond Gindi when saying, “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.” If investors believed in the company’s recovery, we would not be witnessing a liquidation, considering that the company does not owe so much money (relative to assets)
I kind of agree with attorney Rosen that said, “People go to Century 21 to pick through the racks of clothing – and you cannot do that online — which makes it very difficult to have a big e-commerce business.”