The Collaborative International Dictionary of English v.0.48:

Close-fights \Close"-fights`\, n. pl. (Naut.)
   Barriers with loopholes, formerly erected on the deck of a
   vessel to shelter the men in a close engagement with an
   enemy's boarders; -- called also close quarters. [Obs.]
   [1913 Webster]

WordNet (r) 3.0 (2006):

close quarters
    n 1: a situation of being uncomfortably close to someone or
         something