Twitter, under the ownership of Elon Musk, is experiencing a tumultuous period that has led to disarray in its operations and a series of unpaid bills. The latest blow to the tech giant comes in the form of an eviction order issued by a judge in Boulder, as court documents reveal that Twitter owes three months' rent to its landlord, totalling over $75,000.
The landlord, Lot 2 SBO LLC, based in Chicago, owns the office space occupied by Twitter at 3401 Bluff St in Boulder. In February 2020, Twitter provided a $968,000 letter of credit to the landlord, which was intended to cover the rent payments. The details of the arrangement between the two parties are somewhat obscure, but it appears that the landlord has been drawing on the letter of credit to fulfil Twitter's rent obligations.
However, the funds in the letter of credit were depleted in March, and Twitter has not made any rent payments since then. This failure to pay rent for several months indicates a more severe deterioration in Twitter's operations than anticipated, as such a situation is highly uncommon.
The Denver Business Journal, along with court documents, reported the landlord's legal action against Twitter. The landlord initiated legal proceedings in May, leading to a judge's order on May 31 that the sheriff's office should assist in evicting Twitter from the premises within the next 49 days, specifically before the end of July. The case, with the number 2023CV30342, is being heard in Boulder District Court.
Once bustling with approximately 300 employees, Twitter's Boulder offices have experienced a significant decrease in staff due to layoffs, firings, and resignations. The current number of employees is estimated to be less than half of the original count.
While researching the case, TechCrunch discovered another separate lawsuit, indicating that a cleaning company is seeking $93,504 in unpaid fees from Twitter.
Also Read
'Buying Netflix at $4 billion would've been better instead of...': Former Yahoo CEO Marissa Mayer
ChatGPT beats top investment funds in stock-picking experiment