Marijuana multistate operator The Cannabist Co. will shut its Denver cultivation and manufacturing facility and lower 50 jobs as a part of its ongoing chapter proceedings.
The layoffs will begin Sept. 11, based on a Employee Adjustment and Retraining Notification (WARN) filed July 14 with the Colorado Division of Labor and Employment, as first reported by The Denver Publish.
Affected employees will proceed to obtain base pay and advantages for 60 days.
The cultivation website at 4750 Nome St. was as soon as residence to Medication Man, certainly one of Colorado’s best-known hashish operators. Columbia Care, now generally known as The Cannabist Co., acquired it in 2021.
Why is The Cannabist closing its Denver facility?
The Denver closure is the most recent step in an ongoing liquidation. The Cannabist filed for Chapter 15 chapter safety in Delaware on March 25, going through about $270 million in debt to lenders and the IRS.
A U.S. Chapter Court docket decide accepted the Chapter 15 protections on Could 9, overturning an objection from creditor East West Financial institution.
Within the meantime, the MSO bought off its permits in Virginia, Ohio and Delaware.
In March, The Cannbist Co. entered a memorandum of understanding (MOU) to promote property in Colorado, Illinois, New Jersey, West Virginia, Massachusetts and Maryland.
The corporate surrendered its New York medical allow and wound down operations in Pennsylvania after these markets drew inadequate purchaser curiosity, based on courtroom filings.
What’s inflicting the monetary struggles?
The Denver shutdown displays a broader squeeze on Colorado cultivators. Wholesale marijuana costs have fallen from a pandemic peak of about $1,700 per pound to lower than $600 per pound not too long ago, based on business sources, as reported by The Denver Publish.
The drop has pushed vertically built-in operators to desert costly develop operations and supply product on the open market.
The Cannabist isn’t alone.
Chicago-based PharmaCann, proprietor of LivWell Enlightened Well being, closed a Denver cultivation and processing facility in March, eliminating 132 jobs.
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Kristin Popek, vp of expertise at The Cannabist, wrote within the WARN letter that every one affected workers have been notified their separations shall be everlasting. She didn’t reply to requests for remark from The Denver Publish.
The Ohio allow sale is anticipated to shut within the third quarter of 2026. The corporate’s remaining Colorado property stay topic to the MOU, with no purchaser confirmed as of the WARN submitting.
