WeWork Closes Corrigan Station, Once a Central Hub for Kansas City’s Startup Community
March 22, 2024, Kansas City – International co-working powerhouse WeWork announced the impending shutdown of its Corrigan Station premises in Kansas City. The location, closely intertwined with the city’s flourishing startup ecosystem, will reportedly close by the end of April.
WeWork’s Restructuring Strategy Takes a Toll on Corrigan Station
A WeWork spokesperson confirmed that the decision is part of WeWork’s strategic restructuring endeavors. Opened in the summer of 2017, the Crossroads location served as a core hub for startup communities within the city’s historic Corrigan Station building.
WeWork had filed for Chapter 11 bankruptcy protection back in November, stirring up uncertainties regarding the future of its shared workspaces, including Corrigan Station and Lightwell, its two-floor downtown coworking space which began operations in 2020 amidst the global COVID-19 pandemic.
Relocation an Option for Displaced Members
WeWork reportedly suggested Lightwell as a potential alternative for the companies currently operating from Corrigan Station. The company stated, “We have offered affected members the option to relocate, with our support, to WeWork Lightwell and deeply apologize for any inconvenience this may cause. Kansas City continues to be a priority market for WeWork and we look forward to continuing to provide our members with flexible workspace solutions at our other location in the city.”
A History of Struggles Before COVID-19
Unfortunately, WeWork’s troubles began even before the onset and prolonged impact of COVID-19. After it ballooned to over 110 locations worldwide, its founder and CEO, Adam Neumann, was expelled in 2019. Despite significant reductions in operating costs and a rise in revenue, WeWork continues to confront an unfriendly market. Office workers have shifted to hybrid and remote working models that didn’t mesh instantly with WeWork’s business model. Apart from this, the company has reportedly vacated 3 million square feet of offices worldwide, with closures still ongoing.
Boost in Local Startups and Coworking Spaces
Despite the shutdown of WeWork’s Corrigan Station, local co-working communities like Plexpod are experiencing an increase in queries from companies seeking new offices. Grayson Smith, the president of Plexpod, commented, “Our goal is to help the people of Kansas City make a life, not just a living, by connecting them to the local and global community of entrepreneurs, elected officials, philanthropists, and artists. We are the hometown team when it comes to co-working.”
Looking to the Future
While WeWork continues its efforts to manage the crisis, it somehow signals the company’s commitment to stay in the business. “WeWork is here to stay,” David Tolley, CEO of WeWork, reassured in his letter last September. He promised to invest in the company’s products, services, and member experiences to meet the evolving needs of the workspace in the future. At the same time, local entities like Plexpod are also gearing up to fill the void and reinforce Kansas City as a prominent space for entrepreneurship.
