MedMen’s Turbulent Journey

LOS ANGELES- MedMen Enterprises, once hailed as a titan in the cannabis industry, faces a starkly uncertain future as it shuts down the majority of its dispensaries in California, its home state. The closures, which took place on Thursday, leave the company with only two operational stores in the state, signaling a dramatic downturn for the once-thriving multistate operator.

According to reports, MedMen could not be reached for comment as its corporate headquarters remained silent amidst the unfolding crisis. A former employee, Jay Johnson, who was laid off in February after six years at the company’s Abbott Kinney Boulevard location in Los Angeles, shared insights into the company’s sudden decision to close its California outlets. Johnson learned of the closures from a former colleague, highlighting a hasty effort to liquidate stock through fire sales, offering discounts of up to 75% on products.

MedMen’s remaining operational dispensaries are reportedly located at Los Angeles International Airport (LAX) and in the Torrey Pines area of San Diego. This information was confirmed by budtenders at these locations, while attempts to contact other MedMen stores across California met with silence, underscoring the extent of the closures.

At its zenith, MedMen boasted 13 dispensaries throughout California. The company’s downfall has been marked by a series of troubling developments, including the closure of its flagship store in West Hollywood, along with its San Jose, Emeryville, and San Francisco locations. Additionally, the departure of ex-CEO Ellen Deutsch Harrison in January, after less than seven months at the helm, further destabilized the company. This leadership change led to severed relationships with top cannabis edibles makers Wyld and Kiva, critical blows to MedMen’s product offerings.

The company’s financial struggles have become increasingly apparent, with shares no longer trading on the Canadian Securities Exchange and zero value on over-the-counter markets since January. The lack of a quarterly financial report since May of the previous year has left investors and observers in the dark regarding MedMen’s current fiscal health. At last reporting, MedMen had a mere $7.6 million in cash with a working capital deficit of $383.2 million and a net loss of $31.2 million for the quarter.

MedMen’s asset liquidation strategy has seen it exit the Arizona and Nevada markets entirely, though it reportedly maintains operations in Illinois, Massachusetts, and New York. The company’s precipitous decline has not only affected its employees and shareholders but also its business partners. Amber Senter, CEO of cannabis brand Makr House, voiced her surprise at the lack of communication from MedMen regarding the closures, highlighting the broader impact of the company’s financial woes on vendors and partners.

As MedMen’s story unfolds, the narrative has shifted from a narrative of expansion and dominance to one of cautionary tales within the cannabis industry. The company’s rapid decline serves as a stark reminder of the volatile nature of the cannabis market and the critical importance of sustainable business practices and financial management. As MedMen struggles to stabilize, the industry watches closely, learning from its challenges and hoping for a more stable future for cannabis enterprises.