Posted on 06/25/2023 11:04:43 AM PDT by Cronos
Twitter owes three months’ rent to its Boulder landlord, and a judge has signed off on evicting the tech giant from its office there, court documents show.
..there have been numerous reports of unpaid bills. While a contractor going unpaid during a rocky transition is unfortunate but not uncommon, ceasing to pay rent altogether for months suggests Twitter’s operations may be farther gone than anyone expected.
According to court documents and reporting by the Denver Business Journal, Lot 2 SBO LLC, the Chicago-based landlord that owns Twitter’s office at 3401 Bluff St in Boulder, was provided a $968,000 letter of credit back in February of 2020. It has been drawing on this to pay the rent in lieu of ordinary payments (the details of this arrangement are somewhat obscure), but the money ran out in March, and the company has not paid since. (If we assume rent was paid regularly from that sum, that places it at around $27,000 per month, giving a sense of the values involved here.)
In May the landlord took it to court, and on May 31 the judge issued an order that the sheriff should assist in the eviction of Twitter within the next 49 days — i.e. before the end of July. The case number is 2023CV30342 in Boulder District Court.
As many as 300 employees once worked in Twitter’s Boulder offices, but between layoffs, other firings, and resignations, it is probably less than half of that now.
.. In the course of looking up the case another appeared apparently confirming a separate case in which a cleaning company is seeking $93,504 in unpaid fees from the company.
(Excerpt) Read more at techcrunch.com ...
Yup, Twitter is done for sure now. What will I do? Nothing. Don’t have any of it. Social credit score? -100. Well except the FR fbi list. 🤔
https://www.investopedia.com/terms/l/letterofcredit.asp
What Is a Letter of Credit?
A letter of credit, or a credit letter, is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. If the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. It may be offered as a facility (financial assistance that is essentially a loan).
Due to the nature of international dealings, including factors such as distance, differing laws in each country, and difficulty in knowing each party personally, the use of letters of credit has become a very important aspect of international trade.
A Colorado judge has given the order to evict Twitter from its Boulder office due to unpaid rent, as reported by the Denver Business Journal.
easy way to disengage.......................
Lot 2 SBO LLC, the Chicago-based landlord that owns Twitter’s office at 3401 Bluff St in Boulder
Yeah, just get evicted and bye no more CO tax revenues to pay
US Media: “Twitter Going Broke, Cannot Pay Rent!!!”
Musk: “Why bother with rent, I already laid off the people?”
(note to ‘sensitive’ people: I made up both of the above)
Yea, I am sure the worlds richest person ‘can’t afford’ to pay the rent - more likely he is playing hardball with landlords, Musk knows, if they evict him, the offices are going to be sitting empty a very long time in this market.
“I suspect Musk wants to close the Colorado office down...”
You have the right answer.
The 80-20 rule applies to twitter. The difference is Musk plans to make to with the 20% who do the actual work and can the 80% who post videos of their work day doing absolutely nothing while getting smoothies at the company cafeteria.
The eviction breaks the lease. That is probably the main reason for Twitter not paying any more rent after the LOC ran out.
The Boulder employees are long gone from Twitter and their severance payments must have run out by now. Maybe they went down the street to Google.
I am sure that the State of Colorado will find some way to make up any lost tax revenue.
I can’t imagine that Musk would want any part of having offices in the commie, Peoples Republic of Boulder. It’s no better than San Francisco. Good move Elon! I am sure the staff is Boulder is as left as they come. Maybe they can learn to mine coal.
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