Twitter to be evicted from Colorado office over unpaid rent of 3 months

According to a Bloomberg report, Musk's company was behind on more than $10 million in payments to various companies

Twitter may be evicted from its Colorado offices soon after it failed to pay rent and a judge approved the company's removal from the premises.

The Elon Musk company has been given until the end of July to vacate.  

The tech behemoth faced eviction from its S'Park office on Bluff Street in Boulder after its landlord, The John Buck Co, filed a lawsuit against Twitter for failing to replenish its credit line.

When Twitter moved into the space in 2020, it was required to maintain a $968,000 line of credit, which John Buck Co could access if the company fell behind on rent. However, when that credit line was used, the company had 10 days to replace the funds.

 

According to a report by Bizwest, the company, which doesn't appear to actively use its 65,000-square-foot space, stopped paying rent in March and then refused to rebuild the fund.  

Twitter has also failed to pay rent of $75,000 for three months.

Twitter sued for failing to pay rent

The company owned by Elon Musk, who has a net worth of $235 billion, may also be behind on its nearby Walnut Street offices. In 2022, the company vacated the space and placed it on the sublease market, said the report.

Other companies have also sued Twitter for failing to pay, including Colorado-based Avalanche Commercial Cleaning Inc, which claimed in a lawsuit that Twitter failed to pay $100,000 in cleaning bills.

Twitter behind on more than $10 million in payments

Bloomberg reported that Musk's company was behind on 'more than $10 million' in payments to various companies. Many of the companies they owe money to are small businesses.

In December 2022, one of Twitter's San Francisco landlords filed a lawsuit against the social media giant, alleging that it failed to pay rent on its California Street location. In addition, the company failed to make payments for its Seattle offices.

Many small vendors have filed a separate class action lawsuit against Twitter for its failure to pay.

Since taking over Twitter, the billionaire has added $12 billion to the company's debt.

Twitter's value has also fallen to one-third of what it was when Musk bought it in October, falling from $45 billion to $15 billion in just six months.