From Giant To Gone: Billion-Dollar Cannabis Company MedMen Sells-Off Its Property Under Receivership

MedMen’s properties in Illinois, Nevada, and New York are moving closer to sales, but the outlook is not so promising in California and Massachusetts. The slow but steady closing up shop for MedMen Enterprises is proceeding under California-based receiver Richard Ormond, who filed an update this month stating that sales are underway for most of former MedMen dispensaries, while some are being abandoned and four others in California are apparently still serving customers.

MedMen’s Downfall

MedMen officially declared bankruptcy earlier this year, but its downfall has been lingering for much longer than that. Its collapse included hundreds of laid-off workers, thousands of investors bailing and numerous landlords and suppliers left hanging. Although most were hung out to dry, some are now claiming what they say is rightfully theirs. The California cannabis chain, often dubbed the “Apple Store of Weed” due to its flashy storefronts and upscale interiors, is now being sold bit by bit.

And when we say collapse, we mean losses of millions of dollars.

The company was once a celebrated titan valued at $1.7 billion. A December 2022 SEC filing reveled the severity of the case, showing only $15.6 million in cash against $137.4 million in debt. Following this, store closures and inventory clearances began in California, along with severed ties with major brands over nonpayment issues. Landlords demanded back rent and C-suite and board members jumping ship. On April 23 the company was placed into receivership in California. The next day it filed an assignment into bankruptcy pursuant to the Bankruptcy and Insolvency Act ("BIA") in Canada.

Read Also: Once Called The ‘Apple Store Of Weed’ And Valued At $1.7B, This Cannabis Company Has Declared Bankruptcy

Torn Into A Thousand Pieces

In a report filed July 12 with the Los Angeles County Superior Court, Ormond reiterated that most of MedMen's roughly $560 million in debts remain unpaid, including more than $262 million owed to Superhero Acquisition L.P. and another $59.9 million to Hankey Capital. Both are senior secured lenders. Ormond also re-emphasized the estimated value of between $70 million and $100 million for MedMen's remainings. But most major asset sales have yet to close, though Ormond has lined up interested buyers for MedMen facilities in Illinois, Nevada, and New York, analyzes Green Market Report.

MedMen’s New York properties have overdue rent, but potential buyers are identified. In Illinois, dispensary sales await state approval. Nevada dispensaries are under contract, pending regulatory approval. A Boston dispensary may be abandoned. California sees various property issues, including returns to landlords and ongoing operations facing possible closures or evictions.

Overall, the secured lenders are funding the minimum required to keep certain assets open and operating, as the liquidation process continues.

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Image: MedMen Profile On X

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