US: Common Living, once the largest coliving operator in North America, is ceasing operations due to insolvency.
A company statement said: “Despite concerted efforts to manage the challenging financial landscape, Common Living was not able to achieve profitability and did not have the liquidity to continue operations without the ongoing significant financial support of Habyt, Common’s parent company.”
Luca Bovone, CEO of Habyt, said; “It is with a heavy heart that we announce the closure of Common. The Common team has dedicated themselves to delivering innovative living solutions to our customers. It is deeply disappointing to end this journey, and we extend our heartfelt gratitude to Common’s employees, partners, and customers for their unwavering support over the years. This decision, although not what we had hoped for, will make the remainder of the Habyt group more financially agile, with greater capacity to accelerate growth and generate value.”
Effective immediately, all operations of Common will be suspended as the company initiates the process of winding down its business affairs. This decision will impact its employees, who will receive support during this transition.
“Customers with active leases or memberships will be contacted directly to discuss the implications of the closure and to ensure a smooth transition. Common Living will fulfill its obligations to the best of its ability during this period, subject to the requirements of the U.S. Bankruptcy Code,” said the company.
Habyt will maintain a share of its presence in the USA, with several buildings directly connected to the group, located in NYC, Chicago, LA, DC, and Austin.
The assets of Common will be sold off to repay creditors under Chapter 7. Common’s assets are valued at up to $10 million, against up to $50 million in liabilities, according to its bankruptcy petition.
Started in New York in 2015, the company raised $113 million across several funding rounds. Investors in Common have included Kinnevik AB, Maveron and LeFrak.
Last year it merged with Habyt Group, which became the parent company of Common.
In 2021 it reached an agreement with Starcity to take over management of much of the latter’s global portfolio. The deal came after Starcity acquired Ollie, another coliving startup.
Founder Brad Hargreaves stepped down in August 2022. Former Point Hospitality Group CEO Karlene Holloman took the CEO role after serving as Common’s head of property management.
