Twitter Sued For Unpaid Rent In UK, San Francisco
Twitter is facing two separate lawsuits over its failure to meet rent payments in its London office and its San Francisco headquarters, the latest in an unraveling saga that has continued since Elon Musk acquired the company.
The Crown Estate, a monarchy-owned commercial property portfolio, began court proceedings against Twitter over alleged non-payment of rent in its London offices last week. Twitter is also being taken to court by its San Fransisco landlord for missing rent payments in December and January.
The owner of Twitter's San Francisco headquarters, a company called Sri Nine Market Square LLC, told the Associated Press that Twitter "breached the Lease by failing to pay monthly rent and additional rent" for January amounting to $3.4 million.
Twitter, which has had a lease in the building since 2011, had fallen behind on a similar amount of rent in December, which property management recouped from a letter of credit that Twitter had put up as a security deposit, according to documents filed Friday with the Superior Court of California.
After using those funds, the property management said Twitter still owes $3.16 million in unpaid rent and is seeking late fees and interest plus attorneys' fees. Twitter is still occupying the space, according to management.
In its U.K. battle, Twitter allegedly fell behind on rent at its office space at 20 Air Street, London. A spokesperson for the Crown Estate said the institution had previously reached out to Twitter before filing the lawsuit related to rental arrears, according to CNN.
All of this comes as billionaire Elon Musk has been embracing extreme measures to cut spending at the company. Twitter has auctioned off expensive furniture, coffee machines, and other items from the San Francisco office to make money.
Musk bought Twitter last year for $44 billion, after trying to exit the deal multiple times, and has received immense criticism for his handling of the social media giant. Musk's first interest payment on the debt he took on to finance the deal might be due at the end of this month, according to the Financial Times.
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