- Advertisement -
More
    - Advertisement -
    - Advertisement -
    HomeCannabisMedMen Files for Bankruptcy with $411M Reported Liabilities

    MedMen Files for Bankruptcy with $411M Reported Liabilities

    - Advertisement -

    More bad news cannabis enterprise MedMen which announced its departure from the industry by filing for bankruptcy in Canada. With liabilities totaling approximately $411 million, the company’s move signals a major shift in its operations. MedMen disclosed its bankruptcy application under Canada’s Bankruptcy and Insolvency Act on April 24, appointing B. Riley Farber Inc. as the bankruptcy trustee. Additionally, the company’s American subsidiary, based in California, initiated receivership proceedings in the Los Angeles Superior Court on April 23, aiming to systematically dissolve and liquidate its assets. Consequently, MedMen’s subsidiaries face dissolution or asset sales in compliance with U.S. regulations.

    The decision to halt operations and pursue bankruptcy and receivership stems from a comprehensive evaluation of MedMen’s financial standing, its failure to meet financial obligations, and the anticipated actions of secured creditors. Amit Pandey, the company’s Chief Financial Officer, had resigned earlier, effective February 13, followed by immediate resignations from each of the company’s directors just before the commencement of bankruptcy proceedings.

    MedMen West Hollywood reopened under new management, at 8208 Santa Monica Blvd. According to a source, One Plant, a California weed dispensary and delivery service, purchased three MedMen locations, San Diego, LAX and West Hollywood. The West Hollywood location reopened on Friday, March 22, 2024, after its abrupt closure in February. It has been at that location in WeHo for roughly six years and it is not yet known what will happen to the space under the recently filed bankruptcy.

    Founded in 2010 by Adam Bierman and Andrew Modlin, MedMen rapidly expanded its footprint across multiple U.S. states, culminating in its public listing in 2018 after raising $110 million in initial funding. However, challenges emerged, including financial mismanagement, legal disputes, governance concerns, and market volatility, exacerbating the company’s debt burden and profitability woes. Internal conflicts and executive turnovers further tarnished MedMen’s reputation, eroding investor confidence.

    Despite efforts to navigate these challenges, MedMen faced a slew of setbacks, including a significant decline in revenue, reported layoffs, and a plummeting stock price to zero in January. In 2021, Tilray, alongside Gotham Green Partners and other investors, announced plans to purchase $166 million in convertible debt and warrants from MedMen, contingent on U.S. cannabis legalization. This move, facilitated through Tilray’s noncontrolling interest in Superhero Acquisition LP, aimed to bolster MedMen’s assets, including stores and intellectual property, potentially reviving its fortunes in the market.

    0 0 votes
    Article Rating
    - Advertisement -
    Paulo Murillo
    Paulo Murillohttps://wehotimes.com
    Paulo Murillo is Editor in Chief and Publisher of WEHO TIMES. He brings over 20 years of experience as a columnist, reporter, and photo journalist. Murillo began his professional writing career as the author of “Love Ya, Mean It,” an irreverent and sometimes controversial West Hollywood lifestyle column for FAB! newspaper. His work has appeared in numerous print and online publications, which include the “Hot Topic” column in Frontiers magazine, where he covered breaking news and local events in West Hollywood. He can be reached at [email protected]

    1 COMMENT

    Subscribe
    Notify of
    guest
    1 Comment: We Want to Hear from You!
    newest
    oldest most voted
    Inline Feedbacks
    View all comments
    Jerome Cleary
    Jerome Cleary
    Offline
    1 month ago

    jeez

    RELATED ARTICLES
    - Advertisment -

    Recent Comments On WEHO TIMES

    Latest Articles

    1
    0
    Would love your thoughts, please comment.x