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‘Difficult decision’: Cannabis company files for bankruptcy, plans to shut down - PennLive

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A cannabis company has filed for bankruptcy and is shutting down operations.

MedMen Enterprises Inc., which operates in several U.S. states, filed for bankruptcy in Canada on Wednesday.

The company’s CFO resigned on February 13, and each of the company’s directors resigned before the commencement of the bankruptcy proceedings.

On Thursday, the company’s wholly-owned subsidiary, MM Can USA Inc., a California corporation, was placed into receivership in the Los Angeles Superior Court, Santa Monica Division to effectuate a dissolution and liquidation of its California-based assets.

The company’s current chief restructuring officer formally resigned and was appointed by the Los Angeles Superior Court as the receiver of MM Can USA.

MedMen and its subsidiaries operate in California, Nevada, Illinois, Massachusetts, and New York and sell cannabis for medical and recreational use under the MedMen and LuxLyte brands

“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,” the company said in a news release. “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.”

MedMen Enterprises Inc. has about $411 million in liabilities, according to a Market Watch report.

Five years ago MedMen’s market valuation peaked at about $3 billion, according to the report.

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