Connect with us


USA: MedMen declares bankruptcy with 400 million dollars of debt



Listen to this article

The North American cannabis giant MEDMAR has collapsed under the weight of its debt, announcing last week that it has declared bankruptcy and plans to liquidate its assets. On April 26, the once successful MSO (multi-state operator) announced that it has filed for bankruptcy under the Canadian Bankruptcy and Insolvency Act and that all of its directors have resigned with immediate effect, following the dismissal from your CFO in February.

Additionally, on April 23, 2024, MedMen's California-based subsidiary, MM CAN USA, was placed into receivership in Los Angeles Superior Court to dissolve and liquidate its assets.

The company's Restructuring Director resigned from his position and was appointed Judicial Administrator of MM CAN USA. Similar bankruptcy proceedings are expected to occur in other US states where the subsidiary operates.

This bankruptcy comes just six years after the company's IPO, seeing the company's value reach a peak of $3 billion in the following months. The company now leaves behind more than $400 million in debt. Like many of its peers, MedMen rode the wave of positive sentiment in 2018, seeing its share price more than double by the end of the year.

The company expanded rapidly, growing to 25 locations in California, Nevada, Illinois, Massachusetts and New York, taking on significant debt in the process. In 2019, MedMen attempted to finalize a $682 million merger with PharmaCann, which ultimately fell apart due to concerns antitrust, leaving the company struggling to pay its creditors.

Scandals continued to dog the business, leading to its founder, Sam Bierman, being ousted in 2020, embroiled in allegations of misuse of company funds. Further legal battles, accusations of racism and increasing competition from legal and illegal cannabis markets plagued MedMen during its fall from grace.

Since its peak, the company's share price has fallen by more than 90% and all but two of its stores have closed.

“The difficult decision to cease operations and initiate bankruptcy and receivership proceedings was made after careful consideration of the current financial situation of the company and its subsidiaries, its inability to pay its obligations when due and the anticipated enforcement actions of guarantee by creditors”, said the company in a press release.

“After careful consideration of these factors and in the absence of other available alternatives, the company's board of directors determined that it was in the company's best interest to proceed with the initiation of bankruptcy and receivership proceedings,” the statement ends.
This article was originally published by Ben Stevens on Business of Cannabis



[Disclaimer: Please note that this text was originally written in Portuguese and is translated into English and other languages ​​using an automatic translator. Some words may differ from the original and typos or errors may occur in other languages.]


What do you do with €3 a month? Become one of our Patrons! If you believe that independent cannabis journalism is necessary, subscribe to one of the levels of our Patreon account and you will have access to unique gifts and exclusive content. If there are many of us, we can make a difference with little!

+ posts
Click here to comment
Notify of

Inline feedback
View all comments

Watch the Documentary "Patients"

Documentary Patients Laura Ramos help us grow

Mais recentes

International21 hours ago

USA: Pediatrician Bonni Goldstein launches petition against ban on natural CBD medicines in California

North American pediatrician Bonni Goldstein is warning of the attempt to ban medicines derived from natural CBD in...

International22 hours ago

Europe has almost 23 million users of cannabis, the most consumed of all illicit substances

Cannabis continues to be, by far, the most consumed illicit substance in Europe. These are the conclusions of the “Report...

Events2 days ago

Mary Jane celebrates legal cannabis culture for the first time in Germany

It is next weekend, from the 14th to the 16th of June, that the usual Mary Jane will take place, at the Messe...

Events1 weeks ago

CB Club brings together cannabis professionals in anticipation of Mary Jane, in Berlin

In anticipation of the CB Expo (Cannabis Business Expo and Conference), which will take place in Dortmund, in September, the CB Company will...

report1 weeks ago

South Africa: the legalization of an already thriving industry

In the weeks leading up to the General Assembly elections in South Africa, last Wednesday, May 29, there were...

Interviews1 weeks ago

Rui Reininho: “I think it's really weird that my GNR colleagues are poking their noses into people's properties to see what this plant does”

Rui Reininho, Portuguese musician who became famous as the lead singer of GNR, needs no introduction. Contrary to what many people think, he did not found...

News2 weeks ago

Canada: Study shows that using cannabis reduces methamphetamine consumption

Polydrug users, individuals who consume several substances, often turn to cannabis as a way to reduce their consumption...

Events4 weeks ago

CannaTrade returns to Zurich from May 24th to 26th

CannaTrade – Zurich International Hemp Fair and Festival comes of age in 2024, celebrating its 18th...

Press Releases4 weeks ago

SOMAÍ Group and its subsidiary RPK Biopharma expand partnership with Cookies to include Europe and the United Kingdom

LISBON, PORTUGAL, May 16, 2024 / — The SOMAÍ Group (“SOMAÍ”) and its subsidiary, RPK Biopharma expanded...

National4 weeks ago

Portugal: Estimated CBD consumption increases despite ban

The “Cannabis in Portugal” report, carried out by Euromonitor International, released the most recent data on the cannabis industry,...