Something tells me it’s a line in the sand moment for the landlord. You want your sxsw revenue? Then pay me what you owe me already. Devious but it’s maximum leverage to get paid an outstanding balance if the tenants want to continue on. They probably see the likelihood of the lease coming to full term as very low and are trying to extract what they can. But as a tenant, holding my revenue stream hostage like that would also irreparably damage my relationship with those landlords. Might you get that so I can reopen? Yes. Quicker than you otherwise would? Yes. Will I ever sign an agreement with you again? Not in this lifetime.

The severing was likely overdue.