Why is Twitter being evicted
As per the report, Twitter had a rather unique arrangement with the landlord. The company was given a letter of credit, which was worth $1 million. This was in 2020 and since then Twitter was paying rent from the credit. The report says that the line of credit ran out a couple of months back. Since then Twitter hadn’t paid any rent to the landlord. From the amount of credit, it appears that the monthly rent was close to $27,000.
Last month, the landlord took the matter to court and the judge ultimately ruled that Twitter should vacate the premises in the next 49 days, which means by end of July the company will be evicted. It’s not clear what happens if in the interim Twitter ends up paying the dues.
The Twitter office in question had 300 employees at its peak. However, soon after taking over Twitter, Elon Musk swung the axe and thousands of employees were fired while some quit on their own accord.
This isn’t the first case of Twitter facing troubles over rent and office headquarters. In San Francisco, the landlord of Twitter’s headquarters has also sued the company. A similar situation had unfolded in London as well.
The eviction comes at a rather interesting time as Musk has been quite vocal about employees working from office. In fact, it is mandatory to work from office at all of Musk’s companies, including SpaceX and Tesla.
Twitter hasn’t commented on the matter in Colorado so far.