Twitter sued by Elon Musk for missing rent payments at UK HQ in San Francisco
Twitter is facing two separate lawsuits for failing to pay rent at its London office and San Francisco headquarters, while the social media giant’s financial struggles continue.
The Crown Estate, which manages properties in King Charles’ portfolio, is reportedly suing Twitter over unpaid rent at the company’s UK headquarters in London at 20 Air Street.
A spokesman for the Crown Estate said he previously turned to Twitter before filing the rent arrears lawsuit, according to CNN.
Twitter was also sued Friday by the landlord of its San Francisco offices for failing to pay rent in December and January, according to a copy of the lawsuit shared with the San Francisco Chronicle.
The company failed to pay its $3.36 million rent last month, prompting the landlord, SRI Nine Market Square LLC, to draw on Twitter’s line of credit. Twitter again failed to pay the next month’s rent of $3.42 million, but the landlord was only able to draw about $265,000 on the line of credit, which now has a balance of $1.
The landlord argues that Twitter breached the contract by failing to make those rent payments and by not increasing its line of credit by $10 million, which was required in the event of a change of ownership under the lease.
This comes as billionaire Elon Musk took extreme measures to cut the company’s 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 informed they had just hours to remove their belongings from the office and switch to teleworking, according to Bloomberg.
Musk bought Twitter for $44 billion last year after multiple attempts to back out of the deal. According to the Financial Times, Musk’s first interest payment on the debt he took on to fund the deal could be due later this month.