Capping a spectacular public downfall, the multistate cannabis operator MedMen announced on Friday that it has filed for bankruptcy.
“The difficult decision to shut down operations and commence the Bankruptcy Proceedings and Receivership Proceedings was made after careful consideration of the current financial condition of the Company and its subsidiaries, their inability to pay their liabilities as they become due and the anticipated enforcement actions of secured creditors.” — MedMen statement, in a press release
Having once held the industry’s largest cannabis retail footprint in the US, MedMen filed for bankruptcy under Canada’s Bankruptcy and Insolvency Act. The company said its Los Angeles-based subsidiary owes more than $410 million and entered receivership on April 23 in the Los Angeles Superior Court for the dissolution and liquidation of its assets, Forbes reported.
“It is contemplated that ancillary receivership proceedings will be sought in those U.S. states where [MedMen] controls or owns assets,” the company said. “As a result of such receivership proceedings, the operations and assets of MedMen’s subsidiaries will be dissolved or liquidated pursuant to applicable laws in the United States.”
Chief Financial Officer Amit Pandey and the company’s other directors resigned before the bankruptcy proceedings, according to the press release.
The company’s downfall has been playing out publicly for some time:
- MedMen announced last month it was dropping all of its California locations.
- The company last year sold all of its assets in the Arizona and Nevada cannabis markets.
- The company’s deal to sell its New York-based assets to Ascend Wellness fell through due to concerns about MedMen’s allegedly ‘deteriorating’ assets.
- The company sold off its Florida-based assets last March.
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