Twitter finds itself embroiled in a legal battle over unpaid rent at its Boulder office. As the company’s operations have faced upheaval following its acquisition by Elon Musk, reports of unpaid bills and financial disarray have surfaced. Now, court documents reveal that a judge has authorized the eviction of Twitter from its Boulder location due to three months of outstanding rent.
Under Elon Musk’s ownership, Twitter has encountered various challenges, including financial difficulties. Recent reports from TechCrunch have highlighted the company’s struggles with unpaid bills, suggesting a state of disarray within its operations. While it is not uncommon for contractors to go unpaid during transitional periods, the cessation of rent payments for months raises concerns about the extent of Twitter’s troubles.
According to court documents and information seen by the Denver Business Journal, Lot 2 SBO LLC, the landlord based in Chicago, owns Twitter’s office premises at 3401 Bluff St in Boulder. In February 2020, the landlord received a substantial $968,000 letter of credit, which it used to cover the rent instead of receiving regular payments from Twitter. However, the available funds were depleted in March, leading to Twitter’s failure to pay rent since then. Based on estimation, assuming regular payments, the monthly rent amounts to approximately $27,000, providing insight into the financial magnitude of the situation.
In May, the landlord decided to take legal action against Twitter, initiating proceedings in court. Subsequently, on May 31, the judge issued an order authorizing the sheriff’s intervention in the eviction process. As per the court order, Twitter is required to vacate the Boulder office within the next 49 days, setting a deadline before the end of July. The case is officially documented as 2023CV30342 in Boulder District Court.
Once bustling with approximately 300 employees, Twitter’s Boulder offices have experienced a significant reduction in the workforce due to layoffs, terminations, and resignations. While an exact headcount is unavailable, it is speculated that the current employee count is less than half of its previous capacity. This eviction could further disrupt the company’s operations and negatively affect employee morale.
TechCrunch has verified the legal records mentioned by the Denver Business Journal, corroborating the news of Twitter’s eviction. However, the Sheriff’s office declined to comment on ongoing matters until they are concluded. Interestingly, while researching the eviction case, another separate case came to light, where a cleaning company is reportedly seeking $93,504 in unpaid fees from Twitter, further compounding the company’s financial woes.
Discover more from GadgetBond
Subscribe to get the latest posts sent to your email.
