Century 21 Wants to Move Covid-19 Insurance Fight to Bankruptcy Court – The Wall Street Journal

Century 21, which blamed its decision to shut down on its property insurers, wants to bring the legal fight over Covid-19 coverage to bankruptcy court.

The New York-based department store chain this week said it could have been saved if insurers agreed to pay about $175 million it says it is owed under policies to protect against business disruptions.

The designer discounter, which sought bankruptcy protection Thursday, is asking a New York bankruptcy judge to hear its case against its insurers quickly, so if victorious, it can collect on its policies. The family-owned department store sued its insurers in July in New York state court, after government restrictions in response to the pandemic forced it to close down.

The bankruptcy court, however, is unlikely to issue a decision or speed up a settlement that would result in a payout to Century 21, said bankruptcy lawyers not involved in the case who were interviewed by The Wall Street Journal. And even if it does, that decision wouldnt save the storied retailer, they said.

The bankruptcy court may decide not to take over the lawsuit against insurers.

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Century 21 Wants to Move Covid-19 Insurance Fight to Bankruptcy Court - The Wall Street Journal