The interior of a Lume Cannabis Co. dispensary.
Michigan marijuana retail behemoth Lume Cannabis Co. abruptly closed four dispensaries on Monday, saying the closures are part of a “realignment for growth.”
Lume, which has more than 1,000 employees and operates 29 dispensaries statewide, closed stores in Bay City, Christmas, Cheboygan, and Southfield.
The laid off employees will be given severance pay and an opportunity to apply for positions at other Lume stores, the company said in a statement to Metro Times
Later this month, the company is opening new dispensaries in Ann Arbor, Grand Rapids, and Portage.
“This realignment is a key part of our strategy to maintain and strengthen our position as Michigan’s leading cannabis retailer,” said Doug Hellyar, president and COO of Lume. “We remain absolutely committed to growing and deepening our retail footprint in communities across Michigan and continuing our efforts to offer high-quality cannabis products for patients and adult-use customers.”
The family that owns Belle Tire has a significant stake in Lume.
The realignment comes at a tough time for cannabis businesses. With the market flooded with marijuana, prices have hit all-time lows
, forcing some businesses to sell cannabis at a loss.
In January 2021, the average cost for an ounce of marijuana was $512, compared to $131 in May, a 74.4% decline, according to the Michigan Cannabis Regulatory Agency.
There are more than 1,000 dispensaries in Michigan, with new ones opening weekly.
The city of Detroit plans to begin approving up to 100 new recreational dispensaries later this year or early next year. But that plan hangs in the balance following two lawsuits
that claim the city’s new recreational marijuana ordinance violates state law.
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