Twitter’s eviction from its Colorado office is coming after it fails to pay rent
A judge ruled signed off on evicting Twitter from its Colorado building after failing to pay its Boulder landlord. TechCrunch reported that the Chicago-based landlord received a $968,000 letter of credit in February 2020. However, the money ran out in March, and the tech firm hasn’t paid since.
Twitter has been facing numerous challenges following Elon Musk’s takeover. This eviction is one of the latest hurdles for one of the world’s most popular social media platforms. Soon, the company’s response to these issues will affect thousands of workers and millions of users.
This article will elaborate on the upcoming Twitter eviction from its Colorado office. Then, I will discuss the company’s other challenges with its new owner and CEO.
Why is Twitter getting evicted?
According to Daily Mail, Twitter moved into its office at 2401 Bluff Street, Boulder, CO, in 2020. The company provided a $968,000 letter of credit in February 2020.
The landlord, The John Buck Co., has been drawing from this fund for rent payments, but its details could be clearer. TechCrunch estimates the monthly payments to be roughly $27,000, based on the given values.
The credit line ran out of money in March 2023. Daily Mail says Twitter didn’t seem to use the 65,000-square-foot space and declined to rebuild the fund.
Moreover, the tech firm hasn’t paid $75,000 in rent for three months. On May 31, the judge ordered the sheriff must assist in the Twitter eviction within the next 49 days.
TechCrunch says the case number is 2023CV30342 in Boulder District Court. Also, DM said it could be behind on rent payments for its nearby Walnut Street offices.
The tech news outlet says roughly 300 people used to work in the Boulder offices. Nowadays, the workforce is less than half due to layoffs and resignations.
Those branches received a “demand for compliance or right to possession notice” letter in December 2022. It shows the company owes almost $180,000 in back rent.
Daily Mail also got sued by other companies for late payments. For example, Colorado firm Avalanche Commercial Cleaning Inc. alleged in a lawsuit Twitter failed to pay $100,000 in cleaning bills.
DM also cited a Bloomberg report that the social media firm was behind on “more than $10 million” payments to several small businesses. They have filed a separate class action lawsuit for its failure to pay.
What are Twitter’s other challenges?
- The Twitter eviction is only one of the issues the new CEO, Linda Yaccarino, must face. TIME listed these other problems she must address:
- Yaccarino must rebuild the company’s reputation to attract advertisers again.
- Moreover, she must handle Elon Musk’s unpredictable actions while managing the company.
- Also, she must find ways for the company to profit. In March 2023, Elon Musk said Twitter is less than half of what he paid to acquire it.
- The former NBC exec must balance content moderation and free speech. It must offer users freedom, according to Musk’s vision. Meanwhile, it must ensure they will not post content that will repel advertisers.
- Moreover, she must revitalize employee morale after Elon Musk’s actions. In October 2022, he told BBC he downsized from 8,000 workers to 1,500. Moreover, he discontinued remote work and required employees to accept “long hours at high intensity.”
- Yaccarino must also act fast, as competitors see Twitter’s decline as an opportunity to grow.
Conclusion
A judge ruled Twitter must vacate its offices after failing to pay rent for its Colorado office. The company will complete its eviction in the next 49 days, before the end of July.
Daily Mail also said the company’s value crashed to one-third of its initial acquisition price in October 2022. In other words, the company went from $45 billion to $15 billion in only six months.
Soon, the Twitter eviction will affect numerous employees and users. Learn more about the impact of social media and other digital trends at Inquirer Tech.
