Twitter is being forced out of its office after failing to pay rent for up to three months to its Boulder landlord, according to court documents that have been signed off by a judge.
The company’s operations have been in disarray ever since Elon Musk took over, with reports of several unpaid bills. While it’s not uncommon for contractors to face payment issues during transitional periods, the prolonged non-payment of rent indicates that Twitter’s situation may be worse than anticipated.
Based on information from the Denver Business Journal and court documents, Lot 2 SBO LLC, the landlord based in Chicago that owns Twitter’s office at 3401 Bluff St in Boulder, received a letter of credit worth $968,000 in February 2020.
The landlord has been utilizing this credit to cover the rent instead of receiving regular payments, although the exact details of this arrangement remain somewhat unclear. However, the funds from the letter of credit were depleted by March, and Twitter has failed to make any payments since then.
If we assume that the rent was regularly paid using that amount, it gives us an estimate of approximately $27,000 per month, shedding light on the financial scale of the situation.
In May, the landlord initiated legal proceedings, leading to a court order on May 31 for the sheriff to facilitate Twitter’s eviction within the next 49 days, specifically before the end of July. The case, identified as 2023CV30342, is currently being handled in Boulder District Court.
Previously, Twitter’s Boulder offices accommodated approximately 300 employees. However, due to a combination of layoffs, firings, and resignations, it is likely that the current workforce is now less than half of that original number.
While researching the aforementioned case, Tech Crunch discovered another case emerged that seemingly corroborates a separate incident involving a cleaning company. In this particular case, the cleaning company is pursuing $93,504 in unpaid fees from Twitter.
