Rolling Stone published a skeptical feature on high profile L.A. retailer MedMen.
- The retailer now has almost 40 stores and more than 2,200 employees. It lost $65M in Q4 2018 on $30M in revenue.
- While the company claims to control 7% of California retail sales, the story argues its success depends on its future looking bets in New York and Florida.
- CEO Adam Bierman and President Andrew Modlin deny charges, made in a lawsuit by former CFO James Parker, that they permitted casual bigotry.
- The company also faces a class action suit from former employees claiming they worked unpaid hours. (MedMen has declined to comment.)
- “The company is far out ahead of their skis,” an investor said and described MedMen’s chance at long-term success as “microscopic.”
- New York state is slow-walking three large proposed cannabis mergers, including MedMen’s $682M proposal to acquire PharmaCann.
green market report
Quick hit
- Vitamin Shoppe is the latest big retailer to say it will stock CBD products.
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