Landlord sues Twitter for not paying San Francisco office's rent
Elon Musk has repeatedly spoken about Twitter's poor financial state. It now seems that the situation has become more fraught. The microblogging platform is being sued by the landlord for non-payment of rent for the San Francisco office. Musk has been on a cost-cutting spree since he took over Twitter. However, the mass layoffs and subsequent cost-cutting measures haven't worked out as he hoped.
Why does this story matter?
- Lawsuits against Twitter for unpaid bills are piling up. This makes one wonder - how bad are the platform's financial woes?
- Musk has resorted to closing office spaces to save costs. He is also reportedly trying to renegotiate existing lease agreements.
- Maybe, he shouldn't have been stubborn about Tweeps returning to offices. That would have certainly helped him save some costs.
Twitter allegedly owes $136,250 in rent
The lawsuit against Twitter for unpaid rent was filed by Columbia Property Trust. Per the lawsuit filed with the San Francisco Superior Country Court, Twitter failed to pay for its office space on the 30th floor of the Hartford Building at 650 California Street. It is different from the company's headquarters at Market Square. The landlord alleges that the social media platform owes $136,250.
The landlord alleges a breach of contract
In the lawsuit, the landlord alleged that Twitter was notified in mid-December that it will be in default of its lease obligations if it fails to pay rent within five days. California Property Trust has accused Twitter of breaching the contract.
A software vendor and private jet provider sued Twitter
This isn't the only lawsuit against Twitter for unpaid bills. Last month, Private Jet Services Group, LLC, a private jet provider, sued Twitter for not paying $197,725 owed for two flights that executive Leslie Berland took. Another lawsuit was filed against Twitter by Imply Data Inc., one of its software vendors, for failing to honor a multiyear, multimillion-dollar contract.
Twitter has not paid rent for its global offices
The office space in San Francisco is not alone in Twitter's 'unpaid rent' column. Last month, The New York Times reported that Twitter stopped paying rent on all of its global offices. The company has also reportedly decided to close its Seattle office amid an eviction threat. The company has cut janitorial and security service at the Seattle office, per The New York Times.
