Off-price retailer Century 21 to shut down its 13 stores due to COVID-19

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Century 21, the off-price retailer with 13 stores in New York, New Jersey, Pennsylvania and Florida, will shut down operations due to the impact of COVID-19. The company failed to pay its insurance policies that protect against business interruption. The payments totaled about $175 million. “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,” said Century 21 co-Chief Executive Raymond Gindi in a statement. Century 21 has been in business for 60 years. Going out of business sales will take place at store locations and online. The SPDR S&P Retail ETF has gained 11% for the year to date while the S&P 500 index is up 5.2% for the period.
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