Despite the widely publicized demise of MedMen Enterprises last year, the recognizable name brand is still in use by three shops in the Los Angeles area. The stores were formerly owned by the multistate operator but two are now apparently controlled by the Canadian firm Captor Capital Group (CSE: CPTR) (FRANKFURT: NMVA) (STUTTGART: NMVA), while receiver Richard Ormond is in charge of running the third one.
According to a report filed in October with the Los Angeles Superior Court by Ormond, who’s been working to sell off MedMen assets since last April, nearly all of MedMen’s former dispensaries have been sold, closed or transferred back to landlords. Ormond reported that of MedMen’s previous dispensary empire, only the downtown L.A. and West Hollywood locations remained operational, while the LAX and another L.A. dispensary were “transferred back to their original owners and are not part of the receivership estate” before he began the wind-down.
According to the MedMen website and employees working at three of the shops, the downtown L.A., West Hollywood and LAX dispensaries are all still open and selling marijuana to customers 21 and older. Staff at each shop answered the phone Tuesday and confirmed that they’re all still operating under the MedMen brand name, even though the shops are no longer formally affiliated with the bankrupt MSO.
“It’s the same name, just a different owner,” a budtender at the old LAX MedMen shop said. “It’s just those three. There’s no more San Diego ones. It’s here, downtown L.A. and West Hollywood… (MedMen is) completely done. It’s just another investment group that owns other types of dispensaries.”
According to a staffer at the LAX shop, the new company in charge is Captor Capital, which also owns and runs the California cannabis dispensary chain One Plant. Ormond also confirmed via email that Captor Capital is running the LAX and downtown L.A. MedMen shops under management service agreements, while Ormond himself is personally managing the West Hollywood MedMen dispensary.
A spokesman for Captor declined a request for comment on Tuesday, including on whether it intends to ultimately buy them and rebrand them as One Plant dispensaries, or keep using the MedMen moniker, or if it has other plans.
MedMen corporate also did not respond to a request for comment Tuesday.
Captor Capital’s California cannabis businesses – including One Plant – may also be in financial trouble, however. Global Assets, the same financial firm that requested a court-appointed receiver for Gold Flora in November, also asked the Santa Barbara Superior Court to appoint a receiver to run One Plant, citing its “mounting financial losses,” according to a press release.
Captor reported a C$1.2 million net loss for the most recent quarter, which ended Sept. 30 last year, with zero revenue, and net income has been in the red every quarter except for one going back to December 2022, according to the company’s most recent financial filing. Total net losses dating back to that quarter are C$5.2 million, despite one outlier quarter last year in which Captor reported C$30.2 million in net income.
Ormond also reported that a fourth dispensary in the San Diego area, located in the Torrey Pines neighborhood, was also still operational under a management services agreement, although the landlord there is attempting to have the business evicted. Green Market Report was unable to reach anyone at that store or confirm if it’s still open for business.
As for the rest of the MedMen empire, Ormond has completed shuttering five dispensaries and a grow in New York, abandoned a dispensary owned by MedMen in Massachusetts after failing to find a buyer, and was poised as of August to sell two dispensaries in Illinois and two more in Nevada, pending regulatory approval. Two other former MedMen shops in the San Francisco Bay area were also transferred back to landlords, who Ormond reported having “identified new operators for each location.”
Ormond also confirmed to Green Market Report that a new status update on the receivership proceedings will be available soon.
MedMen receiver report Oct 2024 [[{“value”:”The stores continue to operate under the MedMen moniker but are no longer affiliated with the bankrupt MSO.
The post Three MedMen shops still operational in California – but with different owners appeared first on Green Market Report.”}]] Read More
