MedMen Enterprises Hires ATB Capital Markets to Review and Sell Non-Core Assets in Restructuring Efforts

LOS ANGELES– MedMen Enterprises Inc. has provided an update on its restructuring efforts, announcing that it has hired ATB Capital Markets Inc. to review and sell one or more of its non-core assets in Arizona, Illinois, and Nevada. This move is intended to boost liquidity and maximize shareholder value with an asset-light model.

The company is considering selling its vertically integrated operations in Arizona, comprising one dispensary located in Scottsdale and a 20,000 sq. ft. cultivation and production facility located in Mesa, as well as two dispensaries located in Oak Park and Morton Grove in Illinois, and two dispensaries located in Las Vegas, Nevada.

The company has been trying to sell its New York assets, which Ascend Wellness opted not to buy in 2022, resulting in a short but intense legal battle. If MedMen is able to divest all the properties it seeks to sell, it would be left with only its California stores and its Massachusetts Fenway Park store.

In addition to selling non-core assets, the company has managed to cut expenses in payroll costs across its retail locations, cultivation centers, and corporate headquarters by 34%. It is also making progress on localization of store assortments and improving the product quality and profitability of its cultivation centers. MedMen plans to implement a new POS system and loyalty platform later this spring to drive increased store efficiencies and customer engagement.

MedMen quietly released its earnings in early February, noting that it needed more cash than was coming in and that it needed to raise capital. However, the company also told shareholders that it had defaulted on its debt. As a result, the company said it would delay new store openings, permanently or temporarily close underperforming stores, and engage in other restructuring activities. The company is also trying to renegotiate leases with landlords and has outlined several lawsuits regarding the company’s real estate issues.