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MedMen Cannabis Chain Nearing Financial Collapse

Once valued at $1.7 billion, the “Apple Store of weed” is running out of cash

Published

2 years ago

February 8, 2023

VMSD Staff

MedMen Cannabis Chain Nearing Financial Collapse — MedMen’s dispensary in West Palm Beach, Fla., was among 14 stores acquired by Green Sentry Holdings in August 2022. Courtesy of MedMen

MedMen’s dispensary in West Palm Beach, Fla., was among 14 stores acquired by Green Sentry Holdings in August 2022. Courtesy of MedMen

These can be tough times in cannabis retailing, as many participants face big debt, falling marijuana prices, competition from illegal sellers and high taxes, Fortune writes.

Those difficulties are reflected in the dire straits faced by MedMen (Culver City, Calif.), a chain of cannabis stores once described as the “Apple Store of weed” and valued as high as $1.7 billion as a public company, the outlet reports.

Specifically, the business is near financial collapse, according to a regulatory filing with the Securities and Exchange Commission, which showed the retailer has only $15.6 million in cash versus $137.4 million in debt.

“The conditions described above raise substantial doubt with respect to the company’s ability to meet its obligations for at least one year,” MedMen said in the filing last week.

With more than 700 employees, the company is trying to stay afloat by reducing its footprint. It exited Florida in August 2022, selling its 14 stores there to Green Sentry Holdings, and is currently looking to offload its New York stores.

Founded in 2010, MedMen has 23 dispensaries spread across California (13), New York (4), Nevada (3), Arizona (1), Illinois (1) and Massachusetts (1).

Read more at Fortune.

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