Twitter is facing two separate court cases over its failure to make rent payments at its London office and headquarters in San Francisco, as the social media giant’s financial woes continue.
Crown Estate, which manages properties in King Charles’ portfolio, is allegedly suing Twitter over unpaid rent at the company’s UK headquarters at 20 Air Street in London.
A spokesperson for the Crown Estate said it previously contacted Twitter before filing its rent arrears lawsuit, according to CNN.
Twitter was also sued by the landlord of its San Francisco offices Friday for failure to make rent payments in December and January, according to a copy of the lawsuit published by the San Francisco Chronicle.
The company failed to pay its rent of $3.36 million last month, prompting the owner, SRI Nine Market Square LLC, to withdraw the amount from Twitter’s line of credit. Twitter then again failed to pay $3.42 million in rent for the following month, but the landlord only managed to get about $265,000 in the line of credit, which he now has a balance of $1.
The landlord argues that Twitter breached the contract by failing to make lease payments, as well as by failing to raise the $10 million credit limit, which it would have been required to do in the event of a change of ownership, under the lease agreement.
This comes at a time when billionaire Elon Musk is adopting extreme measures to cut spending in the company. Twitter sold expensive furniture, coffee makers, and other items from the San Francisco office to make money.
Earlier this month, employees at the company’s Asia-Pacific headquarters in Singapore were told they had just hours to remove their belongings from the office and transition to remote work, according to Bloomberg.
Musk bought Twitter last year for $44 billion, after trying to get out of the deal several times. According to the Financial Times, Musk’s first interest payment on the debt he took on to fund the deal could be due at the end of this month.