Element 7 Schedules Receivership Auction for its Dispensary Portfolio

LOS ANGELES – Element 7 is heading into a court-ordered receivership auction for its portfolio of seven dispensary locations after a breach-of-contract lawsuit.

Court-appointed receiver Kevin Singer will conduct the sale on April 1 at 2 p.m. The assets, which include inventory, retail licenses where active, furniture, fixtures, equipment, intellectual property and other intangibles, will be offered free and clear of liens. The locations stretch across several markets: San Francisco’s Laurel Village, Willits, Cathedral City, Mendota, Port Hueneme, Redwood City and Chula Vista.

Three stores [in San Francisco, Cathedral City, and Port Hueneme] are fully operational. The Mendota site has just reopened. The Redwood City and Chula Vista locations are not operating. Redwood City lacks a local license after the state license was surrendered. Chula Vista operations stopped in June 2025 after the city denied a permit renewal; a related court petition remains active.

The listing states the portfolio generates more than $4 million in annual revenue. Bidding starts at $1 million with $100,000 increments. Interested buyers must pre-qualify by 5 p.m. on March 31 with a signed copy of the auction rules, a $100,000 deposit, proof of funds and evidence that they qualify as Cannabis operators.

The receivership stems from a breach-of-contract lawsuit filed by C and H Holdings against Element 7 CA LLC and related entities. Los Angeles Superior Court case 24SMCV05678 led to the appointment of Singer to manage and sell the assets to repay creditors. Judge H. Jay Ford III oversees the matter in Santa Monica. Earlier, Element 7 had settled a separate dispute with Glass House Brands in 2023 and auctioned off a different set of five retail sites in mid-2025.

California’s Cannabis retail sector has seen repeated distress sales as operators grapple with high taxes, heavy regulation and competition. Receivership auctions like this one clear title quickly and remove debt, which can draw experienced buyers who already hold licenses and understand the approval process for transfers. The portfolio’s mix of running stores and sites needing revival reflects the uneven performance common in the state’s market. How the April 1 bidding plays out will show whether buyers see enough value in the operational locations to offset the work required at the others. For the broader industry, these transactions continue to reshape ownership without signaling any larger collapse. Simply the steady sorting that follows years of expansion.