Cannabis Company MedMen Goes Bankrupt With $411 Million In Liabilities

[orthene]

https://www.forbes.com/sites/dariosabaghi/2024/04/29/cannabis-company-medmen-goes-bankrupt-with-411-million-in-liabilities/?sh=4100bf632ec6

Multistate cannabis company MedMen leaves the industry by filing bankruptcy proceedings in Canada with about $411 million in liabilities.

MedMen announced on April 26 that it filed for bankruptcy under Canada’s Bankruptcy and Insolvency Act on April 24. The business advisory firm B. Riley Farber Inc. was appointed as the company’s bankruptcy trustee.

The company also announced that its American subsidiary based in California entered receivership in the Los Angeles Superior Court on April 23 for the organized dissolution and liquidation of its assets.

As a result of these receivership proceedings, MedMen’s subsidiaries will have their operations and assets dissolved or sold off in compliance with U.S. laws.

While MedMen’s Chief Financial Officer, Amit Pandey, resigned effective on February 13, each of the company’s directors resigned immediately before the commencement of the bankruptcy proceedings.

The decision to cease operations and file for bankruptcy and receivership came after assessing MedMen’s and its subsidiaries’ financial condition, failure to meet financial obligations, and expected actions of secured creditors.

“The difficult decision to shut down operations and commence the Bankruptcy Proceedings and Receivership Proceedings was made after careful consideration of the current financial condition of the Company and its subsidiaries, their inability to pay their liabilities as they become due and the anticipated enforcement actions of secured creditors. After careful consideration of these factors and in the absence of other available alternatives, the board of directors of the Company determined that it was in the best interests of the Company to proceed with the commencement of the Bankruptcy Proceedings and Receivership Proceedings,” the company’s press release reads.

MedMen operates in multiple states with retail stores and cultivation facilities. It traded on the Canadian Securities Exchange (MMEN) and over the counter in the U.S. (MMNFF).

Founded in 2010 by Adam Bierman and Andrew Modlin, it expanded rapidly, opening stores in several U.S. states.

[jones]

They're lucky to be in Canada, marijuana companies in the US aren't allowed to file for bankruptcy


Cannabis Companies Can't File for Bankruptcy - So Now What?


https://www.lowndes-law.com/newsroom/insights/cannabis-companies-cant-file-for-bankruptcy-so-now-what