MedMen Winds Up Getting Wound Up: Files for Bankruptcy, Assets Placed in Receivership

NEW YORK- MedMen Enterprises has declared bankruptcy in Canada, announcing the decision on April 24 amid escalating financial troubles. With liabilities amounting to C$561 million ($410.4 million), the cannabis company has appointed B. Riley Farber Inc. as the bankruptcy trustee. A meeting for bankruptcy creditors is scheduled for May 14 via a Zoom video conference.

The company’s statement highlighted that the move towards bankruptcy and the placement of its remaining California assets into receivership were based on the dire financial condition of MedMen and its subsidiaries. These entities have been unable to meet their financial obligations, prompting the board of directors to initiate these proceedings as a last resort.

MedMen’s difficulties intensified earlier in the year. After a series of asset liquidations, including sales in Arizona and Nevada, the company experienced significant downgrades in its stock value, leading to a cessation in trading. The operational downturn led to store closures across California and unresolved payments with major brands, impacting the company’s market operations.

Further complicating matters, MedMen’s Chief Restructuring Officer has resigned and is now appointed by the Los Angeles Superior Court as the Receiver for MM CAN USA, Inc., MedMen’s subsidiary, to oversee the dissolution of its California-based assets.

The list of creditors includes major figures and corporations with significant claims, like Superhero Acquisition Corp. and Treehouse Real Estate Investment Trust, which highlight the extent of MedMen’s financial liabilities. Additionally, ongoing legal challenges and unsettled vendor payments continue to plague the company.

MedMen, once a prominent player in the cannabis industry, faces an uncertain future as it attempts to navigate through extensive financial and operational challenges.