Century 21 had insurance for disasters — and the insurer said COVID wasn't one

Century 21 was founded in 1961 by Syrian Jewish immigrants Al and Sonia Gindi in Brooklyn, New York. It grew into one of the most recognised off-price retailers in America — a discount department store selling designer brands at 40–65% off retail. At its peak, Century 21 operated 13 stores across New York, New Jersey, Pennsylvania and Florida, with annual revenue of $747 million. The Lower Manhattan flagship near the World Trade Center became a tourist destination and a New York institution.

The company had purchased business interruption insurance specifically designed to cover losses from events like the COVID-19 pandemic. When the pandemic forced Century 21 to close all its stores in March 2020, the company expected its insurers to cover the losses — roughly $175 million in claims. The insurers refused, arguing that physical damage to property was required for a payout, and that a virus did not constitute physical damage. Century 21 sued, but the legal fight would take years.

Without the insurance payout and unable to survive months of zero revenue with $747 million in fixed costs, Century 21 filed for Chapter 11 bankruptcy on 10 September 2020. All 13 stores were liquidated by December 2020, and approximately 1,400 employees lost their jobs. The Gindi family lost the business their parents had built over six decades. The flagship store in Lower Manhattan eventually reopened in 2023 under new ownership — but the original Century 21 was gone.