Twitter is dealing with two separate lawsuits over its failure to satisfy lease funds in its London workplace and its San Francisco headquarters, because the social media big’s monetary struggles proceed.
The Crown Estate, which manages properties in King Charles’ portfolio, is allegedly suing Twitter over unpaid lease within the firm’s U.Okay. headquarters in London at 20 Air Street.
A spokesperson for the Crown Estate mentioned it had beforehand reached out to Twitter earlier than submitting the lawsuit associated to rental arrears, according to CNN.
Twitter was additionally sued by the owner for its San Francisco places of work Friday for lacking lease funds in December and January, according to a copy of the lawsuit shared by the San Francisco Chronicle.
The firm didn’t pay its $3.36 million in lease final month, prompting the owner, SRI Nine Market Square LLC, to attract the sum from Twitter’s line of credit score. Twitter subsequently once more didn’t pay the $3.42 million in lease for the subsequent month, however the landlord solely managed to get about $265,000 from the road of credit score, which now has a $1 steadiness.
The landlord argues Twitter has breached the contract by lacking these lease funds, and likewise by not elevating its line of credit score by $10 million, which it was required to do within the occasion of a change in possession, below the lease settlement.
This comes as billionaire Elon Musk has been embracing excessive measures to chop spending on the firm. Twitter has auctioned off costly furnishings, espresso machines and different gadgets from the San Francisco workplace to generate income.
Earlier this month, workers within the firm’s Asia-Pacific headquarters in Singapore had been notified that they’d simply hours to take away their belongings from the workplace and transfer to working remotely, according to Bloomberg.
Musk purchased Twitter final yr for $44 billion, after making an attempt to exit the deal a number of occasions. Musk’s first curiosity fee on the debt he took on to finance the deal is perhaps due on the finish of this month, according to the Financial Times.