A judge has ordered Twitter to leave its Colorado office due to unpaid rent. Twitter has been involved in a legal dispute with its landlord, who asserts that the firm owes more than $75,000 in rent.
The dispute between Twitter and its landlord began this year when the company fell three months behind on its rent payments. The landlord filed a lawsuit against Twitter, seeking payment for the unpaid rent.
Back in 2020, Twitter was awarded a letter of credit worth $968,000. The letter was used to pay the company’s rent. But the credit ran out a few months ago, and the company now owes $75,000 to its landlord.
The judge in the case ultimately sided with the landlord, ordering Twitter to vacate the office by the end of July and pay the rent. It remains to be seen whether the landlord seeks damages for breach of contract. The Colorado office now hosts 150 Twitter employees.
Twitter must vacate its Colorado office by the end of July over unpaid rent
This is not the first time that Twitter has entered a legal battle with its landlord over unpaid rent. The company had a similar case in San Francisco where the landlord claimed Twitter hadn’t paid its $136,260 rent.
It is still unclear why Twitter is not paying its office rent on time. However, Business Insider already reported that Elon Musk has told an advisor that “he would only pay rent over his dead body.” Twitter landlords in London and New York City sued the company for not paying rent on time.
Besides the Colorado landlord, a local cleaning company has also notified Twitter of its $100,000 bill that was not paid. Additionally, the company’s former employees who Musk laid off have filed a lawsuit over their unpaid severance payments.
The decision is a serious setback for Twitter. Which has been battling to keep its financial stability after being taken over by Elon Musk. Whether Twitter intends to appeal the decision or try to reach a settlement with its litigants has not yet been made public.