The expansion of the Quarters in the USA seems to have ended in bankruptcy.
Eight properties and two other German limited companies cohabitation On Friday, according to court records, the company filed for bankruptcy in Chapter 7. According to Chapter 7 on bankruptcy, companies cease operations and liquidate all eligible assets for repayment to creditors.
Quarters, a joint brand of the Berlin-based Medici Living Group, has grown $ 300 million for its promotion to the United States in early 2019. This occurred with the expansion of Europe by $ 1.4 billion. Founded in 2012, the company has become “WeWork Shared Living” and the largest global operator of the shared living concept, which rents furnished rooms to tenants in shared flats.
Following the funding, the company said it intends to open 9,000 rooms with its construction partners worldwide in 2019. Since last year, the Quarters website has stated that the company has 5,000 shared living rooms in its portfolio worldwide. The company now claims to operate 3,000 rooms with 95 percent occupancy.
The eight Quarters-owned properties that have filed for bankruptcy are located in New York, Washington, DC, Philadelphia and Chicago. It is not clear how many tenants live in the eight buildings, but at least 449 rooms are rented on the Quarters website. In each building, Quarters rented space from the owner of the building and then leased the units to individual tenants, according to the submission.
In New York, there appear to be four properties that Quarters has actively rented through its website: 324 Grand Street in the Lower East Side; 629 East 5th Street and East Village; 911 Jefferson Avenue in Bedford-Stuyvesant; and 186 North 6th Street in Williamsburg. According to her website, the DC Quarters building is fully leased, and while her West Loop building in Chicago was still looking for tenants as on Monday.
Two of the bankrupt properties had yet to begin leasing. One was in Philadelphia and the other was in the Clinton Hill neighborhood of Brooklyn at 251 DeKalb Avenue. At the height of the New York pandemic, Quarters’ owner in the DeKalb building sued last spring, the co-founding company tried to end the 10-year lease for the operation of the property. The case is still ongoing.
In total, he estimates 10 LLCs between liabilities of $ 1 million to $ 5 million and assets of less than $ 500,000, according to the filing in Chapter 7.
The quarter did not return a request for comment. The lawyer representing the company in its bankruptcies declined to comment.