In addition to causing waves of lawsuits on this side of the pond, Elon Musk’s tactic of trespassing in office space is now causing waves of lawsuits on the other side of the pond, as the real estate administrator for the Royal Family’s Crown Estate is also taking Musk to court for reluctance to pay rent at Twitter’s London headquarters.
A company affiliated with Shorenstein has filed a lawsuit against Elon Musk’s Twitter for failing to pay $6.8 million in back rent for their Market and Tenth Street headquarters.
However, this is not the only legal dispute Twitter is facing over unpaid rent. Other lawsuits have been filed for unpaid rent for the 30th floor of Twitter’s 650 California office, as well as an office in Seattle where the landlord is suing for two months of unpaid rent.
However, we’ve now learned of a brand-new case that might be a real issue for Musk. According to the Associated Press (AP), the Crown Estate, which is in charge of managing the real estate holdings of the British monarchy, is also suing Twitter for unpaid rent.
The Crown Estate, in the AP’s words, “launched legal proceedings against Twitter after the firm fell behind on rent at its headquarters near London’s iconic Piccadilly Circus.”
According to the Associated Press, the recent lawsuits filed against Twitter for unpaid rent are a clear indication that owner Elon Musk’s cost-cutting strategy includes not paying bills.
This is not just an assumption as there have been multiple reports of Musk instructing staff members to avoid paying invoices. Refusing to pay bills should not be considered a cost-cutting technique as it is a way to instantly renegotiate rent, but it is not a legitimate way to run a business.
The Crown Estate, as explained by the San Francisco Business Times, is “the real estate company that oversees King Charles III’s property holdings.”
According to the AP, the Crown Estate is a massive property portfolio that encompasses most of London’s Regent Street as well as the Windsor estate. It also “owns some of the most expensive real estate in downtown London.”
In typical royal fashion, they are remaining silent during the court processes.
Bloomberg made an effort to glean more information from the complaint but was only able to discover that the Crown Estate had “launched an action against Twitter over its London facilities in the West End, according to court papers. No other information was given, and a representative of the Crown Estate would only confirm the lawsuit.
According to BBC “The Crown Estate, one of the United Kingdom’s main landowners and an independent commercial firm, has taken legal action against Twitter for unpaid rent for office spaces at Air Street.
The lawsuit was filed in the High Court in London last week after the Crown Estate previously contacted Twitter about the rental arrears.
The Crown Estate generates revenue for the Treasury to be used for public expenditure, and a portion of the estate’s yearly excess, known as the Sovereign Grant, is provided to the monarchy to fund their official duties.
These “cost-cutting” steps might foretell worse times for the firm since Musk is said to have previously informed Twitter staff that bankruptcy is still a possibility.
As is well known, Musk borrowed heavily in order to buy Twitter for $44 billion. According to Bloomberg, the corporation will have to make a $300 million quarterly debt payment this month.
Making some quick calculations, the $300 million quarterly payment comes out to $100 million every month, or around $3.2 million per day. And those are simply loan payments, not even the price of running the business.
Additionally, Reuters says that Twitter’s income is down 40% from the same period last year, despite the $8 per month blue check subscription money that was anticipated.
Source: SFIST, AP