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Twitter’s financial woes escalate as it gets evicted from its Boulder office. A fallout after Elon Musk’s takeover, the tech giant struggles with bills and dwindling staff.
Key Takeaways:
- Twitter, now under Elon Musk, is facing financial instability leading to unpaid bills, layoffs, and an eviction notice from its Boulder office.
- The tech giant had an unconventional rent payment method through a letter of credit which ran out recently, with no subsequent payments made.
- The Boulder office eviction is one of many troubles for Twitter, with a range of lawsuits from former employees, local companies, and even the city of San Francisco.
Twitter’s Financial Chaos Leads to Eviction from Boulder Office
Twitter, the social media titan, is reportedly under severe financial stress, leading to eviction from its Boulder office over unpaid rent of three months. As revealed in court documents, the tech mammoth’s operations appear to have significantly deteriorated following its acquisition by billionaire entrepreneur Elon Musk.
Unsettling Changes Under Musk’s Regime
Reports of unpaid bills have been mounting since Musk took over, and Twitter’s overall business health seems to have been adversely affected. An unpaid contractor during a tumultuous transition might be a common enough scenario, but when a company stops paying rent for months, it’s indicative of far deeper issues at play.
The Denver Business Journal has shared details about Twitter’s arrangements with its landlord, Lot 2 SBO LLC, a Chicago-based company. Back in February 2020, a letter of credit worth $968,000 was given to the landlord by Twitter, which has been used since to cover the rent. Unfortunately, this credit ran out in March, and Twitter hasn’t made any payments since, pointing towards a potential financial crunch. Based on these facts, Twitter’s rent was approximately $27,000 per month.
From Courtrooms to Evictions: The Unraveling of Twitter’s Crisis
In May, the landlord initiated legal action, leading to the issuance of an eviction order on May 31. The judge ruled in favor of the landlord, ordering assistance from the sheriff for Twitter’s eviction within 49 days, which means before the end of July.
Twitter’s Boulder office, once bustling with 300 employees, now reportedly houses less than half of that number due to layoffs, firings, and resignations. It adds to the overall image of Twitter turning into an “empty husk”, as the news about the eviction circulates.
While the Sheriff’s office could not comment on ongoing matters, further court records indicate a separate case involving a cleaning company seeking nearly $94,000 in unpaid fees from Twitter.
Nontraditional Rent Payments and a Stream of Lawsuits
Twitter’s rent payment was unconventional, where instead of traditional rent, a letter of credit was used. The credit ran out a few months ago, and no subsequent payments were made. Additionally, there have been lawsuits from a local cleaning company, former employees, and even the city of San Francisco, which is currently investigating potential building code violations at Twitter’s main headquarters.
Twitter’s Silence Amidst the Crisis
Despite the serious allegations and legal actions, Twitter has remained quiet. With its press arm and trust and safety council disbanded, it seems like the platform, once the hub of worldwide conversations, has nobody to respond to these grave situations. It appears that the troubles for Twitter are far from over, and the question remains – what’s next for this beleaguered tech giant?
