Twitter Faces Eviction in Colorado Despite $1 Million Letter of Credit

Robert Carnevale
·2 min read

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.

The property is to be returned to the landlord before the end of July as a result of the order’s 49-day time limit.

The lawsuit was filed by holding company Lot 2 SBO LLC, having not been paid rent since March, after a $968,000 letter of credit Twitter provided back in February 2020 ran out. Now, the judge has ruled the Boulder County Sheriff’s Office can formally evict Twitter and return the space to its owner.

There’s no detail on how many Twitter employees will be affected should the eviction go through, as the office has seen reduced headcount following Twitter’s rampant layoffs since Elon Musk’s takeover of the company.

Twitter representatives could not be reached for comment.

Given how aggressively Musk has downsized Twitter’s operations and company-wide headcount, the eviction situation may not come as a surprise to some and may fall in line with the activitity that has advertisers and investment companies wondering how stable Twitter is.

Also Read:
Can Linda Yaccarino Lean on Hollywood and Media to Turn Twitter Around?

Rival tech company Meta has even called out Twitter’s behavior. During an internal meeting discussing the upcoming Instagram-powered Twitter competitor codenamed “Project 92,” Meta’s chief product officer Chris Cox stated that people were looking for a platform that was “sanely run” — a direct jab at the tweeting platform and its recent woes.

As evidenced by rough ad revenue figures and the aforementioned eviction notice, Twitter’s financials are not in the best possible place, which may be part of the reason it’s employing a new monetization scheme to incentivize users to try out Twitter Blue. Blue subscribers will now be the only ones able to DM people who aren’t following them, a move Musk claims is to reduce spam. Given that the feature is being taken away from regular users and locked behind a paywall, it’s also an incentive for free users to pay up, but Musk did not address the move’s business optics.

Also Read:
Twitter Sets Messaging Restrictions for Users Without Blue Subscription