MedMen Enterprises Inc., a prominent cannabis company with operations throughout the United States, has declared bankruptcy under Canada’s Bankruptcy and Insolvency Act. The announcement, made on April 24, 2024, marks a downturn for the company, which has appointed B. Riley Farber Inc. as its bankruptcy trustee.
The financial turmoil within the company has led to the resignation of Chief Financial Officer Amit Pandey on February 13, 2024, followed by the immediate resignation of all company directors just before the initiation of the bankruptcy proceedings.
Adding to the company’s woes, its wholly owned subsidiary, MM CAN USA, Inc., was placed into receivership by the Los Angeles Superior Court on April 23, 2024. This move is aimed at an orderly dissolution and liquidation of the subsidiary’s assets based in California. The Chief Restructuring Officer of MedMen has stepped down and has been appointed by the court as the Receiver for MM CAN USA, Inc. Further receivership proceedings are expected to be initiated in other U.S. states where the subsidiary has assets.
The board of directors made the difficult decision to shut down operations and commence both the Bankruptcy and Receivership Proceedings after a thorough review of the company’s financial health and its subsidiaries’ inability to meet their liabilities. The anticipated enforcement actions by secured creditors also played a role in this decision. The board concluded that initiating these proceedings was the most viable option for the company’s future.