MedMen May Sell Stores

Struggling cannabis retailer MedMen Enterprises Inc. (Los Angeles) has retained ATB Capital Markets Inc. to assist in the strategic review and potential sale of one or more of its non-core assets in Arizona, Illinois, and Nevada. The news comes on the heels of recent reports that the company – once dubbed “the Apple of cannabis” – is nearly out of money.

The assets under review for possible sale are:

* In Arizona: vertically integrated operations comprising of one dispensary located in Scottsdale and a 20,000 sq. ft. cultivation and production facility located in Mesa.
* In Illinois: two dispensaries in Oak Park and Morton Grove
* In Nevada: two dispensaries in Las Vegas.

Such sales would leave MedMen with operations in California (13 stores), Massachusetts (1) and New York (4), according to its website.

The review by ABT is part of an ongoing restructuring effort by MedMen that has also included a 34 percent reduction in payroll costs across its retail locations, cultivation centers and corporate headquarters, the company said in a news release.

“Along with right-sizing the expense structure, the company continues to make progress on localization of store assortments and improving the product quality and profitability of its cultivation centers,” the company said in its release. “Implementation later this spring of a new POS system and loyalty platform will drive increased store efficiencies as well as significantly more meaningful customer engagement.”

Click here for more coverage of MedMen’s struggles by Global Cannabis Times.