On April 26, multi-state cannabis operator MedMen announced that it has filed for bankruptcy with the Canadian Bankruptcy and Insolvency Act, as of April 24. Recorded liabilities include approximately $561 million CAD, or $411 million USD.
MedMen’s bankruptcy trustee B. Riley Farber Inc. was appointed to represent the company and manage outstanding business obligations (debt, assets, etc.). Its California-based subsidiary, MM CAN USA, Inc., entered receivership by the Los Angeles Superior Court on April 23, and an appointed receiver through “Santa Monica Division” to “to effectuate an orderly dissolution and liquidation of its California based assets.”
Amit Pandey, MedMen Chief Financial Officer, resigned on February 13, but all other MedMen directors resigned prior to the announcement of bankruptcy proceedings.
In a press release, MedMen wrote that receivership proceedings will also be held in other states where MedMen operated. “It is contemplated that ancillary receivership proceedings will be sought in those U.S. states where MM CAN USA, Inc. controls or owns assets,” MedMen stated. “As a result of such receivership proceedings, the operations and assets of MedMen’s subsidiaries will be dissolved or liquidated pursuant to applicable laws in the United States.” Prior to bankruptcy MedMen had operations in California, Illinois, New York, Nevada, and Massachusetts.
A statement prepared for the press release also briefly speaks about why bankruptcy was pursued. “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,” MedMen wrote. “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 …
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Author: Nicole Potter / High Times
