Bankrupt weed company lays off 86 people at Vineland grow sites
The Cannabist filed for bankruptcy in March. Its New Jersey assets were just bought by New York-based Vireo Growth Inc.
Two cannabis grow sites in South Jersey will close their doors in October, laying off 86 staff members as multistate operator the Cannabist Company files for Chapter 15 bankruptcy.
The cultivation facilities — located at 17 W. Park Ave. and 1560 N. West Blvd. in Vineland — will close on Oct. 11, laying off nearly all of the Cannabist’s cultivation and manufacturing employees in New Jersey according to a Worker Adjustment and Retraining Notification, or WARN, filing with the state.
In its bankruptcy filings, the company stated that due to “regulatory, industry and financial challenges,” it was facing a severe liquidity crisis and “unable to meet its financial obligations as they become due.” The Cannabist Company did not respond to a request for comment.
The Cannabist’s New Jersey dispensaries were among some of the first adult-use locations to open in 2022. It operated one of the closest recreational weed dispensaries to the Philadelphia border. On the first day of Jersey’s recreational weed sales, it attracted consumers from all over with a line wrapping around the building to the front door.
The New York-based weed company operates 40 dispensaries and 14 cultivation and manufacturing facilities across 10 markets, including in New Jersey and Delaware. Those sites are being closed or sold off to new buyers. Last week, The Cannabist announced layoffs at one of its Denver grow sites, laying off 50 people in September, according to Colorado WARN notices.
Following the news of the two Vineland grow site closures, The Cannabist announced it would be selling the rest of its New Jersey operation, including the three retail stores in Deptford, Vineland, and Mays Landing, to Vireo Growth Inc for $35 million. The sale will also include some of the Cannabist’s operations in Colorado, Illinois, Massachusetts, and West Virginia markets.
The Cannabist Co., which got its start as Colombia Care, began in Massachusetts in 2012 and soon expanded to 10 states. As of February, the company employed more than 1,200 people, including 101 manufacturing and 43 retail workers in New Jersey.
In March, Cannabist filed for Chapter 15 bankruptcy due to owing lenders and the IRS more than $270 million. In addition to closing many operations across the country, Cannabist sold its Virginia business to Parma for $130 million, Delaware to Arboretum DE PermitCo for $16.5 million, and its Ohio dealings to Holistic for $47 million.
Since the Cannabist Company is also filing for bankruptcy in Canada, this case is poised to be the first time a U.S. bankruptcy court recognizes a foreign insolvency proceeding related to a marijuana business, despite cannabis remaining federally illegal.
