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Twitter was sued for failure to pay office rent.
Twitter has failed to pay $3.36 million in December rent and $3.42 million in January rent for its offices at 1355 Market Street, according to a lawsuit filed in state court in California by the building’s owner, Mr. Nine Market Square LLC. According to the lawsuit.
A Crown Estate spokesperson stated that the legal action was taken in response to contact with Twitter regarding rent arrears on its office space at 20 Ayr Street in London.
Last month, it was also revealed that Twitter was not paying its rent. According to a December 2022 report in The New York Times, the social media company has stopped paying rent in an effort to cut costs following Elon Musk’s $44 billion acquisition of Twitter.
Twitter has leased over 460,000 square feet of space on eight floors of the San Francisco building, according to the complaint. Mr. Nine Market Square put up a $3.6 million letter of credit as security, which Twitter needed to increase to $10 million if control was transferred, which happened when Musk bought the company for $44 billion in October.
Previously, Musk stated that Twitter faced a “precipitous decline in revenue” in the days following its $44 billion acquisition. He claimed in a tweet, without providing any figures or evidence, that the drop in revenue was the result of activist groups putting pressure on advertisers.
