WeWork can’t seem to catch a break.
Google has walked away from a deal to lease space from WeWork in Toronto after months of negotiations, choosing instead to rent 24,000 feet from IWG’s Spaces, Bloomberg reported.
The article doesn’t have exact terms of the lease, but reports that it’s a multiyear deal on two floors at Spaces’ Royal Bank Plaza in the city’s financial district.
Reasons for Google’s decision also weren’t included in the article, but it’s not hard to imagine that the search giant, and potentially other customers considering doing business with WeWork, might think twice.
It’s been non-stop bad news ever since the real estate startup pulled its IPO. The company is running out of cash and appears to be having some trouble raising more. It’s trying to sell several businesses, mulling thousands of layoffs along with other cost-cutting measures. And, the article says, it recently gave up on a project in Seattle.
That’s not exactly confidence inspiring for customers, and so it’s hardly surprising that rivals including IWG, Industrious and Convene, who may smell blood in the water, are trying to take advantage of WeWork’s troubles.