We Are Proud AB declares bankruptcy in Sweden

The Vimmerby-based advertising agency We Are Proud AB, formerly known as Effect Reklambyrå, has been declared bankrupt following a decision by the Jönköping District Court. The bankruptcy marks the end of a business lineage dating back to the mid-1960s.

CEO and Chairman David Artmark attributed the failure to a shifting industry landscape, specifically noting that the rise of artificial intelligence has changed the playing field. While the agency maintained its client base, Artmark stated that assignments have become smaller and less frequent as clients increasingly handle tasks internally using AI tools for text and communication.

Despite attempts to restructure by reducing staff and cutting costs, revenues declined faster than expenses could be managed. The bankruptcy affects ten employees, with seven based in Vimmerby and three in Huskvarna. Previous owners, the Andersson brothers, expressed sadness over the closure of the long-standing institution but noted they had no involvement in the company's recent operations since selling it in 2023.