Evaluating only Quarters’s profile at its peak — without knowing the outcome — the model ranked Market collapse as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
Quarters founded
LAYOFF
Market downturn forces cuts
SHUTDOWN
Sudden Collapse: Quarters ceases operations
Full Analysis
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Documented cause
Quarters, backed by Medici Living Group, raised $300M to operate co-living spaces — furnished shared apartments with community programming — across Berlin, New York, Chicago, and other major cities. The company had master leases on hundreds of units and hundreds of residents. When COVID hit in March 2020, co-living became the worst possible product: shared spaces in a pandemic. Residents left, new bookings stopped, and the master lease obligations remained. Quarters entered insolvency in mid-2020, unable to service its fixed cost obligations with zero revenue.
Lesson
“Co-living compounds multiple risk factors: it is hospitality (hit by COVID), shared spaces (unsafe in a pandemic), and asset-heavy with master leases (cash drain with zero revenue). Quarters had no risk hedge for even a short-term demand shock, let alone a 12-month global crisis.”