Twitter Faces Eviction From Boulder Office Due To Unpaid Rent

Twitter, the popular social media platform, is reportedly facing eviction from its office in Boulder, Colorado, after failing to pay rent for the past two months. The eviction order was issued by a Boulder County judge following a complaint filed by Twitter’s landlord, alleging non-payment of rent, according to court documents obtained by the Denver Business Journal.

In 2020, Twitter signed a lease for four office suites in the Railyards at S’Park building, encompassing 65,000 square feet and accommodating around 300 employees. The lease was with Lot 2 SBO LLC, an affiliate of The John Buck Company, a Chicago-based real estate firm.

According to the lease agreement, Twitter provided a letter of credit worth $968,000 as a guarantee for rent payment. The complaint states that the landlord used the letter of credit to cover Twitter’s rent for March, but the company failed to replenish the funds within the stipulated 10-day period. Lot 2 then took legal action, demanding that Twitter either surrender the property or refill the letter of credit within 72 hours. However, Twitter failed to comply with either request.

As a result, on May 31, a judge ordered the eviction of Twitter from its Boulder office, issuing a “writ of restitution” that will be in effect for 49 days. Throughout the three-plus years of occupying the office space, 38 Boulder-based employees resigned, citing internal memos from Elon Musk, who heads Twitter. Musk’s memos emphasized the need for employees to be “extremely hardcore” and achieve success in an increasingly competitive environment.

Twitter’s financial troubles have been evident since Musk’s acquisition of the platform for $44 billion in October. Apart from the eviction in Boulder, the company also faces another complaint for nearly $100,000 in unpaid cleaning fees at its offices in Colorado’s 1301 Walnut St. location. In December, a “demand for compliance or right to possession” was served to Twitter regarding the unpaid rent at that outpost.

Furthermore, Twitter is facing litigation in San Francisco over $136,260 in unpaid rent. The platform has experienced a significant drop in US ad revenue, with advertisers becoming increasingly concerned about the potential impact of Musk’s involvement. Consequently, Twitter’s ad revenue has declined by 59 percent, significantly impacting its profits. The company has consistently fallen short of its sales projections, and it faces substantial interest expenses on a $13 billion loan, including approximately $600 million in capital expenditures.

In addition to these challenges, Twitter is also being requested to pay an additional $100,000 in back pay to eleven former janitors who claim they were terminated in violation of the Displaced Building Service Workers Protection Act while cleaning Twitter’s New York City offices.

The situation highlights the ongoing financial struggles faced by Twitter and the potential consequences of unpaid obligations.

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