The once-prominent cannabis operator, MedMen Enterprises, has hit rock bottom as it enters bankruptcy proceedings, marking a significant downfall in the cannabis industry. With creditors lining up to claim hundreds of millions of dollars, MedMen’s demise represents one of the largest failures in U.S. and Canadian marijuana retail history.

Financial Turmoil

MedMen’s financial woes led to its decision to file for bankruptcy, citing its dire financial condition and inability to meet liabilities. The company faces anticipated enforcement actions from secured creditors, prompting its move into bankruptcy protection.

Meeting with Creditors

A meeting with creditors is scheduled for May 14, where the extent of claims, totaling over 560 million Canadian dollars ($410 million), will be addressed. Notable creditors include Treehouse Real Estate Investment Trust, Hankey Capital, and Verano Holdings, among others.

California Assets in Receivership

MedMen’s California retail assets have been placed in receivership, initiating the process of liquidating these assets. With seven provisional retail licenses and an annual manufacturing license, MedMen’s presence in California is undergoing dissolution.

New Store Ownership

Several of MedMen’s retail locations in California have reportedly transitioned to new ownership, with One Plant, a unit of Captor Capital Corp., allegedly taking over operations. However, ownership changes are yet to be confirmed by California regulators.

More Receiverships Expected

MedMen is exploring additional receivership proceedings in other U.S. states where it holds cannabis business licenses. States like Illinois, Massachusetts, Nevada, and New York may witness similar actions as MedMen’s financial troubles persist.

Bankruptcy Proceedings

MedMen filed for bankruptcy under Canada’s Bankruptcy and Insolvency Act, leveraging legal mechanisms to address its financial challenges. However, in the United States, federal marijuana prohibition bars plant-touching companies from traditional bankruptcy proceedings.

Final Chapter

MedMen’s journey from industry leader to bankruptcy reflects the tumultuous nature of the cannabis market. With significant debts, layoffs, and leadership changes, the company’s downfall signals a cautionary tale for other cannabis operators navigating a complex regulatory landscape.

As MedMen navigates bankruptcy, its fate underscores the challenges and risks inherent in the cannabis industry’s rapid evolution.