Twitter fails to pay rent on US Headquarters building, to face lawsuit
- ByStartupStory | January 24, 2023
Twitter Inc., led by new CEO Elon Musk, stopped paying lease on its San Francisco headquarters in December, according to a lawsuit filed by the owner.
The social media company failed to pay the $3.36 million December lease for its offices at 1355 Market Avenue and the $3.42 million January lease, according to a lawsuit filed Monday in state court in California by Sri 9 Market Sq. LLC, the building’s owner.
Since joining Twitter, the billionaire has slashed prices. He’s fired half the employees, refused to pay rent on the company’s other offices around the world, and refused to pay some large payments, such as a jet charter. These measures come as Musk deals with the first cost of the $12.5 billion in debt he incurred to acquire Twitter.
The swimsuit also features Musk as a witness in a securities fraud trial in San Francisco, where he is defending his tweet to take Tesla Inc. private. He’ll be back Tuesday to finish his testimony.
According to the complaint, Twitter rents more than 460,000 square feet of space on the eighth floor of the San Francisco building. Sri 9 Market Sq. held a $3.6 million letter of credit score as security, which Twitter was required to increase to $10 million if there was a change in management, which occurred when Musk purchased the company in October for $44 billion.
According to the complaint, Twitter argued that it was not required to spice up the road of credit score.
Sri 9 stated it used the current line of credit score to cover the $3.36 million December lease and a portion of the January lease, leaving the road of credit score steady at $1
Sri 9 is attempting to recoup the unpaid lease and obtain a courtroom declaration that Twitter is in breach of the lease for failing to extend the credit score line to $10 million.
Twitter did not respond to a request for comment after disbanding its public relations division.
Sri 9 Market Sq. LLC v. Twitter Inc., CGC-23-604136, Superior Courtroom of California, County of San Francisco.
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