Twitter is set to be evicted from one of its Boulder offices, after the landlord lodged a complaint to the county judge alleging that Twitter, which signed a lease for four office suites in 2020, has fallen behind on its rent payments.
When leasing the office, Twitter set up a $968,000 letter of credit to be drawn on by the landlord in case the company failed to pay rent. This agreement required Twitter to replenish the letter of credit within ten days if utilized. In March, the landlord used the letter of credit to cover the unpaid rent, but Twitter failed to replenish the credit within the specified period.
In April, the landlord served Twitter a “demand for compliance or possession,” giving the company three days to either return possession of the suites or allocate adequate liquidity to the letter of credit. Twitter failed to comply with either directive, leading the landlord to initiate procedures to terminate Twitter’s rights to the office space.
Twitter, which at one point had 300 employees in the 65,000-square-foot office, has also seen staff turbulence recently. Back in November, 38 employees resigned following CEO Elon Musk’s ultimatum about increased commitment and intense work hours. Musk had previously carried out significant layoffs affecting 87 Boulder employees.
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Information for this story was found via the Denver Business Journal. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
