Debt Burdened Ayr Wellness to Liquidate Assets and Exit Market in Sweeping Restructuring

One of the Nation’s Largest Cannabis Operators Begins Wind-Down Amid Financial Collapse

Ayr Wellness, once a high-flying multistate operator (MSO) in the U.S. cannabis industry, announced a dramatic restructuring on Wednesday that signals the end of its operations as they are currently known. Under a court-supervised plan, the Miami-based company will sell off licenses and assets across eight states to satisfy lenders before initiating a wind-down of the remainder of its business.

The move marks one of the most significant collapses of a publicly traded cannabis firm to date and reflects mounting pressure in the capital-starved U.S. marijuana sector.

From $35 to 3 Cents: Ayr Wellness’ Rise and Rapid Fall

Ayr’s story is emblematic of the broader boom-and-bust cycle in the cannabis industry. After going public during a surge of investor enthusiasm in early 2021, shares in Ayr Wellness (CSE: AYR.A) peaked at $35.40. But as capital dried up, regulatory delays mounted, and competition increased, the company’s stock plummeted. By Thursday, shares were trading for as little as $0.03.

Lenders Take Control: A Fire Sale of Cannabis Licenses Across the Country

In a press release detailing the restructuring, Ayr Wellness revealed that “consenting” senior lenders would purchase key operating assets in Florida, Ohio, Nevada, New Jersey, Pennsylvania, and Virginia states where the company once aimed to dominate.

To keep operations afloat during the transition, these lenders are also providing a $50 million bridge loan at 14% monthly interest. The loan will be repaid with proceeds from an upcoming auction of remaining Ayr assets.

Once the auction is completed, the company will pursue a court-supervised liquidation process in Canada, where its shares are listed, followed by state-by-state proceedings in the U.S. to wind down operations.

In essence, Ayr’s lenders will become owners of the company’s prime cannabis licenses while the corporate shell is dismantled and dissolved.

Years of Strategic Missteps and Mounting Debt Catch Up

Although Ayr appeared to be attempting to stave off insolvency earlier this year, warning signs were present for months.

In February 2024, Ayr raised $40 million and restructured close to $400 million in outstanding debt, pushing much of it to 2026. Still, as of that time, $358 million in debt remained on the books with limited room to maneuver.

Despite shedding costs and announcing select store closures—including four locations in Illinois—the company’s financials remained bleak. In its most recent filings, Ayr reported a net loss of $161 million on $463.6 million in revenue in 2024.

A Nationwide Footprint Crumbles: 97 Stores in Limbo

Prior to this week’s announcement, Ayr operated 97 retail dispensaries across eight U.S. states, making it one of the larger MSOs by footprint. In Virginia, the company had recently acquired the state’s final vertically integrated medical cannabis license. In Florida, a massive 98,000-square-foot cultivation facility was under construction, with an expected revenue impact in the second half of 2025.

Whether these projects will now continue under new ownership is uncertain. All assets are expected to be liquidated and ownership transferred to satisfy creditors.

Vendor Fallout and Market Uncertainty Follow in Ayr’s Wake

The company’s announcement raises numerous questions for suppliers, employees, landlords, and investors tied to Ayr’s sprawling operations.

While lenders are expected to be repaid through asset sales, vendors and unsecured creditors may see little or no compensation depending on how each state-level wind-down proceeds. Some licenses may be sold to competitors or acquired by investment firms—introducing further consolidation in already saturated state markets.

Industry Experts Say Ayr’s Collapse Signals Deeper Market Correction

Ayr Wellness is not the only MSO feeling the squeeze, but its near-total collapse may usher in a new phase of reckoning for the cannabis industry.

Investors have long speculated that a wave of bankruptcies, consolidations, and distressed sales would reshape the cannabis landscape especially without federal reform to ease access to traditional financing.

Employee and Consumer Impact Still Unclear in Affected States

Thousands of workers employed across Ayr Wellness locations now face uncertainty about the fate of their jobs. Customers who rely on Ayr’s stores in regulated markets like Florida and Pennsylvania may also experience disruption, depending on how quickly assets are transferred to new operators.

Some observers believe this could spur short-term product shortages or pricing volatility, particularly in medical-only states where the number of licensed operators is tightly controlled.

A Legal and Operational Domino Effect in Cannabis?

The scale and legal complexity of Ayr’s court-supervised liquidation could set important precedents for how distressed cannabis firms restructure or dissolve in a fragmented regulatory environment.

Because cannabis remains federally illegal, bankruptcy protections under Chapter 11 are not available, forcing companies like Ayr to pursue insolvency proceedings in Canada and state-level workouts in the U.S.

Legal analysts are closely watching how various state regulators respond—especially when it comes to license transfers, local employment rules, and the fate of projects tied to social equity partnerships.

What Happens Next? All Eyes on the Auction Block

In the coming months, Ayr’s licenses and facilities will be shopped to the highest bidders. These assets include:

• Dispensary licenses in high-demand markets like New Jersey and Florida
• Cultivation sites and processing centers in Ohio and Nevada
• Real estate holdings associated with vertically integrated operations
  

Observers expect multi-state operators, private equity firms, and regional cannabis brands to vie for pieces of Ayr’s disintegrating empire.

The End of Ayr Wellness and a New Chapter for U.S. Cannabis

While Ayr Wellness will soon be a cautionary tale of poor timing, debt mismanagement, and regulatory gridlock, the broader industry will continue to evolve.

Companies that prioritize lean operations, sustainable growth, and disciplined financial planning may emerge stronger as capital flows recalibrate.

Until then, Ayr’s dramatic fall underscores the high stakes of operating in America’s legally complex and financially treacherous cannabis landscape.

If you are a vendor or business partner affected by Ayr’s restructuring, contact your legal or financial advisor to assess your claims.