Morristown’s Century 21 to close: Chain declares bankruptcy in pandemic

Seeing Eye co-founder Morris Frank and Buddy, masked for the coronavirus, in front of Morristown's Century 21 Photo by Kevin Coughlin
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Century 21 on Thursday announced it’s closing all 13 of its department stores–including the one fronting the historic Morristown Green, where thousands of children cheer every Christmas season as firemen lower Santa Claus from his landing pad on the store roof.

The New York-based discount chain has declared Chapter 11 bankruptcy, blaming insurance companies for failing to pay $175 million in claims to keep it afloat during the pandemic.

 

Sign at Century 21 in Morristown, March 18, 2020. Photo by Kevin Coughlin

“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,” Century 21 co-CEO Raymond Gindi said in a statement.

“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,” said Gindi, whose New York store was near Ground Zero during the terror attacks of Sept. 11, 2001.

The American Property Casualty Insurance Association has said pandemic outbreaks are “uninsurable.” Century 21 sued several insurance providers, but the company said Thursday it will fold those claims into the bankruptcy proceedings.

Hold on Santa! Nov. 26, 2017. Photo by Jeff Sovelove
Hold on Santa! Firemen lower Kris Kringle from Century 21 roof, Nov. 26, 2017. Photo by Jeff Sovelove

Founded by Al and Sonny Gindi in Manhattan in 1961, Century 21 has stores in New York, New Jersey, Pennsylvania and Florida. No closing dates have been announced. Liquidation sales are planned.

Morristown’s store re-opened weeks ago from the statewide pandemic shutdown in March. Paramus and Elizabeth are the other New Jersey venues.

Century 21 joins a growing list of retailers felled by the coronavirus economic crisis: J.C. Penney, Lord & Taylor, Pier 1 Imports, Modell’s Sporting Goods, Nieman Marcus and Brooks Brothers are among dozens that have filed for bankruptcy, reports CNBC.

‘A SAD DAY’

“This is a sad day in general,” said Tricia Stella, general manager of Morristown’s Century 21 store. She referred questions to corporate spokespersons, who could not elaborate on closing dates, the number of employees at the store, or severance benefits.

Before the pandemic, the chain had sales volume of $1.4 billion and 3,518 employees, according to Data Axle. Sales volume in Morristown was $23.6 million, with about 100 employees; staffing was cut roughly in half from 2017 to 2018, the data research firm reported.

“It’s a challenging time for traditional department stores,” said Jennifer Wehring, executive director of the Morristown Partnership. “They had a great run… almost 20 years in Morristown is definitely a badge of honor.”

Century 21 opened on North Park Place in 2002, after Gensler, the renowned architectural firm, redesigned the four-floor, 132,000-square-foot building, Wehring said.

The place had sat vacant for a nearly a decade after Macy’s left. Before that, Bamberger’s served generations of shoppers on the site, dating to 1949.

 

bambergers
The former Bambergers Department Store in Morristown. Photo courtesy of the North Jersey History and Genealogy Center, of the Morristown & Morris Township Library.

Mayor Tim Dougherty said he was not surprised to hear the downtown’s anchor retailer is going under.

“COVID-19 has impacted not just small businesses but businesses of all sizes, as is evident by places like Lord & Taylor going out of business. We look forward to working with the property owner with any help in transitioning to a new tenant,” the mayor said in a statement.

“Now more than ever, it is critical that the Town remain vigilant and continue inviting new businesses looking to invest in the future of Morristown,” Dougherty said.

‘THERE IS NOTHING ELSE’

Shoppers trickled into the store on Thursday afternoon seeking bargains.

 

‘THERE IS NOTHING ELSE’: Sherlene Kelly of Bloomfield at Century 21, closing soon in Morristown. Photo by Kevin Coughlin.

“I love this store,” said Bloomfield resident Sherlene Kelly, a fan of Century 21’s discounted prices on name brand apparel.

Asked where she will go now, Kelly replied: “I have no idea. There is nothing else. Bloomingdale’s is nothing like this.”

“I’m upset,” said Bernadette Eola of Long Valley when informed about the impending closure.

‘YOU COULD FIND ANYTHING’: Century 21 shopper Bernadette Eola of Long Valley, Sep. 10, 2020. Photo by Kevin Coughlin

Her shopping cart contained costume bracelets, a gift for her niece’s 10th birthday. “I like how you could find anything here.”

Tom Stringfield, a retired electrician from Gillette, said he was “a little disappointed” to lose one of his preferred clothing shops. The pandemic also claimed another of his favorites, JoS. A. Bank Clothiers, which closed stores in Morristown and Gillette.

A retired nurses’ aide, who identified herself as Mrs. Green of Morristown, enjoyed the convenience of Century 21 because she does not drive. “If I want to go for a walk, I might come in and find something nice,” she said. “It’s very sad. It’s a nice place.”

“It’s sad for the town,” added longtime town resident Florence Saco. “How long is it going to stay empty? The last time, it was closed for a long time.”

Morristown Green LLC, the real estate management company that owns the building, could not immediately by reached for comment. The company is not affiliated with this publication.

‘A LITTLE DISAPPOINTED’: Tom Stringfield of Gillette doesn’t want Century 21 to close. Photo by Kevin Coughlin

The building is in a “Town Center” zone, which allows uses ranging from retail and restaurants to housing, offices and supermarkets, said Wehring, looking for silver linings.

“This gives an opportunity for people to be creative,” she said, adding Century 21’s closure may give a boost to smaller retailers, to pick up the slack.

PANDEMIC SCORECARD

It’s been nearly two decades since Morristown’s other department store, Epstein’s, a fixture since 1912, closed to make way for luxury condos and apartments that sparked a downtown renaissance.

‘IT’S KIND OF SAD,’ said Century 21 shopper Heidi Hansen of Chatham, Sept. 10, 2020. Photo by Kevin Coughlin

About a half dozen Morrisown restaurants and shops have been shuttered during the pandemic, and the business vacancy rate, usually around 4 or 5 percent, has crept closer to 10 percent, Wehring estimated.

Gone are the Morristown Pancake House, Nunzio’s Dolce Vita, La Campagna Ristorante, Full Time Fitness, 4ever Michelle Couture and JoS. A. Bank.

But Wehring noted causes for optimism: Clean Juice Morristown, the Millburn Deli and the Rock Box opened this year, and the Morris Pizzeria, Cluck-U Chicken and the Hibiscus Island Grille re-located successfully after the Midtown Shopping Center closed for the M Station office redevelopment project.

That project– named “Office Deal of the Year” by the Commercial Real Estate Development Association, and touted as “Morristown’s coronavirus stimulus package” by M Station attorney Frank Vitolo–is negotiating final details that may include tax breaks with town officials.

While M Station’s backers promise benefits for the town, the shutdown of the Midtown Shopping Center and Century 21 are a one-two punch to David Morales.

The Morristown High School freshman said his favorite hangouts were Burger King and the 7-11 at the now-defunct strip mall…and the department store.

“As a kid, my mom would bring me here to buy clothes,” said Morales, roaming the aisles with some pals. “It’s one of my childhood places.”

GOING, GOING….Century 21 in Morristown, Sept. 10, 2020. Photo by Kevin Coughlin

Frequently Asked Questions for Century 21 Customers

From Century 21:

What did Century 21 announce?

On September 10, 2020, Century 21 filed for Chapter 11 and announced plans to commence a wind down of our retail operations, including the eventual closure of our 13 stores across New York, New Jersey, Pennsylvania, and Florida, after serving customers for nearly 60 years. This announcement comes after thoroughly exploring all alternatives.While Century 21 stores and c21stores.com are currently open to serve customers, we have commenced going out of business sales at all of our locations and online.

Why is Century 21 shutting down its business?

The difficult decision to wind down our business was precipitated by the failure of our insurers to pay significant amounts due to Century 21 under policies put in place to protect against losses stemming from business interruption such as that we experienced recently as a direct result of the COVID-19 pandemic. Without receipt of the insurance proceeds, there was no viable alternative but to begin the shutdown.

Can I still shop at Century 21 in-store and online?

All of our stores remain open, and closing dates will vary by store. Our store locator page (c21stores.com/stores) will be updated periodically. In the meantime, we encourage you to come in to shop as soon as possible and take advantage of unprecedented discounts. Customers can also continue to shop online at c21stores.com for a limited time.

Will there be going out of business sales? If so, when will they start? When will they end?

Yes, we are commencing going out of business sales at all of our locations now. We encourage you to come in as soon as possible to take advantage of unprecedented discounts.

Are all sales now final? If so, starting when?

Yes, all sales are FINAL on merchandise purchased during our going out of business sales beginning on September 10, 2020.

What form of payment do you accept during the going out of business sales?

We will accept cash, the C21STATUS Credit Card, and other nationally recognized credit and debit cards. We will also accept Century 21 gift cards through October 10, 2020; they will be deemed to have no value after such date. We will not issue cash refunds for any of the above.

Will Century 21 continue to honor gift cards? Sell gift cards?

Century 21 gift cards can be used as a form of tender in stores and online through October 10, 2020; they will be deemed to have no value after such date. We will not issue cash refunds for gift cards. Gift cards are no longer available for purchase.

What will happen to my C21STATUS Loyalty Rewards? Will they be honored?

We have discontinued the C21STATUS program and are no longer honoring reward points or any other benefits accrued under that program.

Can I still use my C21STATUS Credit Card? Will I continue to receive perks for using it?

You can still use your C21STATUS Credit Card. From September 10, 2020 on, however, you will no longer receive perks and benefits from paying with your C21STATUS Credit Card.

Will Century 21 continue to accept coupons/promotions? Issue them?

We will no longer be honoring or issuing coupons and sale promotions in light of discounts that will apply to the going out of business sales.

Will items that I ordered, or will order, online still be shipped to me?

Orders placed on c21stores.com will be fulfilled and shipped.

I have a customer issue that has not yet been resolved. What happens with that now?

Our customer service representatives will continue to do their best to resolve any issues for you. You can reach a member of our customer service team at (877) 350-2121 or via email at guestservice@c21stores.com.

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10 COMMENTS

  1. Target would be ideal, but let’s hope the Mayor & the majority rubber stamp Council don’t try to woo them with a 30 yr tax abatement like CVS got.

  2. Ethel, stop the nonsense. What an ignorant comment and slap in the face to all the local business owners. If you have any legitimate case for hiring discrimination, there are a hundred and one laws already in place where you can take it to the courts.

  3. A downtown Target would be terrific. Not only would it attract retail shoppers downtown, it might even spark redevelopment of North Park Place, which currently has all the appeal of a bag of soggy french fries.

  4. I am very disappointed I always shop at the store you can find everything that you need at a reasonable price very sad to hear about this hard times thank you so much for being around

  5. Sad to see business fail downtown or anywhere. At one time it was proposed to replace the century building that time has come.

  6. HUGE lost for the historically Black community of Morris County. Century 21 is one of the few local businesses without discriminatory hiring practices like erroneous language preferences, in this “sanctuary” city.

  7. Very sad to hear about a business going under.
    You know what would work there? Target! Downtown Targets are terrific anchors. I have been to them in Denver and Philadelphia. Why not Morristown?

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