Chalice Brands, one of the largest cannabis dispensary operators in Oregon, is seeking financial protections as its subsidiaries struggle.
According to Willamette Week, the Canadian holding company this week asked an Oregon court to place five of its subsidiaries into receivership.
The company said its subsidiaries owe more than $35 million and are unable to pay.
“This situation has led to an urgent liquidity crisis for the defendants,” Chalice wrote.
The Chalice subsidiaries owe money to suppliers and landlords, which are considering seizing property.
Chalice is asking the court to give it time to restructure and avoid legal action from creditors.
Chalice CEO Jeff Yapp told the publication his company will work on cleaning up the balance sheet and seeking a potential acquisition partner.