In bankrupt. A classic New York outlet announced its closure

The coronavirus It did not distinguish trajectories or categories and it caused havoc in companies of all kinds. This time it was the turn of the classic New York Century 21 outlet, a firm with 13 stores in four cities in the United States that sells discounted products.

The chain has declared bankruptcy and has plans to close its stores. You will make some last sales in your 13 locations in New York, New Jersey, Pennsylvania and Florida, reported the agency Bloomberg. The company accumulated millionaire debts and informed the Justice that it found no alternative but to close.

For the company, the problem originated in the fact that the insurance companies it hired rejected a payment of US $ 175 million claiming for protection from business interruption due to the pandemic and quarantine. This was explained by its co-executive director, Raymond Gindi, in a statement.

The insurance companies turned their backs on the company “at this critical time”, Gindi said, according to the article by Bloomberg. “While retailers in general have suffered greatly from Covid-19, and Century 21 is no exception, we are confident that if we had received a significant portion of the insurance proceeds, we would have been able to save thousands of jobs and weather the storm. “he added.

Century 21 is just one of dozens of large companies and well-known brands that have filed for bankruptcy in recent months. Last May, the Hertz car rental company, struck by the impact of the coronavirus pandemic, it appeared in court for its subsidiaries in the United States and Canada.

“The impact of Covid-19 on travel demand was sudden and dramatic, which caused a sharp drop in the company’s revenue and future bookings, “the company said in a statement.

The company turned to Chapter 11 bankruptcy law in the United States, a mechanism that allows a company that can no longer pay its debt to restructure without pressure from creditors.

In Argentina, at the end of last June the secretary general of the Argentine Chamber of Commerce (CAC), Mario Grinman, was very concerned about the post-pandemic economic scenario: he said that at least 100,000 businesses will close in the country in the coming months. “Everything depends on the duration of this tragedy. It will be very difficult the day after,” he estimated.

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