Twitter faces two separate lawsuits for defaulting on rent payments at its London office and San Francisco headquarters as the social media giant’s financial battle continues.
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 spokesperson for the Crown Estate said it had previously reached out to Twitter before the rent arrears lawsuit was filed, according to UKTN.
Twitter was also sued Friday by the landlord for its San Francisco offices for missing rent payments in December and January, according to a copy of the lawsuit shared by the San Francisco Chronicle.
The company was unable to pay its $3.36 million rent last month, prompting the landlord, SRI Nine Market Square LLC, to withdraw the amount from Twitter’s line of credit. Twitter then again failed to pay the next month’s $3.42 million rent, but the landlord only managed to draw about $265,000 from the line of credit, which now has a balance of $1.
The landlord claims that Twitter was in breach of contract by not paying those rent payments, as well as not increasing his credit line by $10 million, which the lease required him to do in the event of a change of ownership.
This is because billionaire Elon Musk is embracing extreme measures to cut spending at the company. Twitter has been auctioning expensive furniture, coffee machines and other stuff from the San Francisco office to make money.
Earlier this month, employees at the company’s Asia-Pacific headquarters in Singapore were told they had just hours to remove their belongings from the office and start working remotely, according to Bloomberg.
Musk bought Twitter for $44 billion last year after trying to get out of the deal multiple times. Musk’s first interest payment on the debt he took on to fund the deal could be due by the end of this month, according to the UKTN.