MedMen Enterprises Inc., a cannabis company with subsidiaries operating across the United States, declared bankruptcy pursuant to Canada’s Bankruptcy and Insolvency Act on April 24, 2024 and B. Riley Farber Inc. was appointed as the company’s bankruptcy trustee. The company’s Chief Financial Officer, Amit Pandey, resigned effective as of February 13, 2024 and each of the company’s directors resigned effective immediately prior to the commencement of the bankruptcy proceedings.
Also on April 23, 2024, the company’s wholly owned subsidiary, MM CAN USA, Inc., a California corporation, was placed into receivership in the Los Angeles Superior Court, Santa Monica Division (LASC) to effectuate an orderly dissolution and liquidation of its California based assets. The company’s current Chief Restructuring Officer formally resigned and is now appointed by LASC as the Receiver of MM CAN USA, Inc. It is contemplated that ancillary receivership proceedings will be sought in those U.S. states where MM CAN USA, Inc. controls or owns assets. 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.
The company said the difficult decision to shut down operations and commence the bankruptcy 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. 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 proceed with the commencement of the bankruptcy proceedings.
