Cannabis giant plans to close 20 dispensaries in Michigan, citing harsh market conditions
TerrAscend Corp. plans to close all of its retail, cultivation, and processing sites
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TerrAscend Corp., a multistate, publicly traded cannabis company, is cutting its losses in Michigan and closing all 20 of its dispensaries and four cultivation and processing sites in the state.
TerrAscend Corp announced this week that it will also lay off about 250 employees at its dispensaries under the Gage, Pinnacle Emporium, and Cookies brands across Michigan, with locations in Detroit, Ferndale, Lansing, Kalamazoo, Traverse City, Grand Rapids, Battle Creek, and other cities. The company is also closing its cultivation and processing facilities in Bay City, Harrison Township, and Warren.
“Michigan is an extremely difficult market, and we have come to the realization that our resources can be better utilized in our other markets,” TerrAscend Executive Chairman Jason Wild said in a statement. “This move will unlock value for TerrAscend and its shareholders. By concentrating our efforts and resources in the company’s core northeastern U.S. markets — New Jersey, Maryland, Pennsylvania and Ohio — I am confident that we are now positioned to deliver stronger financial performance, including improved margins and operational efficiencies.”
Metro Times couldn’t reach TerrAscend for comment.
According to a news release, the exit is expected to be complete by the third quarter of 2025. The company plans to sell off all its Michigan assets, including real estate, and will use the proceeds to pay down debt.
Michigan’s marijuana industry has become notoriously difficult for cannabis operators, with prices plummeting and oversupply squeezing profit margins.
The move comes as other multi-state cannabis companies have also pulled out of the state’s oversaturated market. PharmaCann shut down its massive LivWell facility in Warren in December, and Curaleaf ended its Michigan operations last year. Countless small cannabis businesses have also shuttered.
TerrAscend is also facing a proposed class action lawsuit in Michigan federal court accusing the company of sending unsolicited marketing texts in violation of the Telephone Consumer Protection Act.
