Elon Musk’s Twitter sued over missed rent payments at UK headquarters in San Francisco
Twitter is facing two separate lawsuits over non-compliance with rent payments at its London office and San Francisco headquarters as the social media giant’s financial struggles continue.
The Crown Estate, which manages properties in the King Charles portfolio, is said to have sued Twitter over unpaid rent at the company’s UK headquarters in London, 20 Air Street.
A spokesperson for the Crown Estate said it had already contacted Twitter before filing the rent arrears lawsuit, according to CNN.
Twitter was also sued by the landlord of its San Francisco office on Friday for failing to pay rent in December and January, according to a copy of the lawsuit shared by the San Francisco Chronicle.
The company failed to pay its $3.36 million rent last month, prompting the owner, SRI Nine Market Square LLC, to draw the sum from Twitter’s line of credit. Afterwards, Twitter again failed to pay the $3.42 million in rent for the next month, but the landlord only managed to get about $265,000 from the line of credit, which now has a balance of 1 dollar.
Landlord claims Twitter breached contract by missing those rent payments and not increasing its $10 million line of credit, which it was required to do in the event of a change of ownership, under the contract rent.
It comes as billionaire Elon Musk has taken extreme measures to cut corporate spending. Twitter auctioned off expensive furniture, coffee machines and other items from the San Francisco office to make money.
Earlier this month, employees at the company’s Asia Pacific headquarters in Singapore were told they only had a few hours to get their things out of the office and switch to remote working, according to Bloomberg.
Musk bought Twitter last year for $44 billion, after repeatedly trying to pull out of the deal. Musk’s first interest payment on the debt he took on to fund the deal could be due at the end of this month, according to the Financial Times.
The Huffington Gt
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