MedMen sued in New York for unpaid rent after receiver shuts down all state facilities | Where to buy Skittles Moonrock online
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A California-based court-appointed Receiver continues to work on getting MedMen creditors and debts paid. One of the company’s former tenants in a Buffalo suburb has filed a lawsuit against the defunct, multistate operator over unpaid rent and other bills totaling almost $70,000.
MedMen The ‘go belly-up’ Richard Ormond, the receiver, has been a recipient of the award since earlier this year. Working since April To wrap up the operations of the company. Ormond reported that as of August, it had not been able to find a buyer for the assets of MedMen in New York, which included four retail dispensaries, and a cannabis production facility.
Ormond summarized his progress in July in a report he filed in August with the Los Angeles Superior Court. “While I had engaged in numerous discussions and had two serious purchasers considering the purchase of these assets, none materialized,” Ormond wrote. “As a result, I began the process of closing down all retail locations as well as the grow facility on July 15. By the end of July, all employees were terminated in New York and all locations closed.
Ormond noted that he had been “in communication” with MedMen’s New York tenants “to try and recover the various premises for them,” but this strategy seems to have been successful only in Utica, the location of the cultivation facility.
This didn’t satisfy ALS Main and Transit LLC. The owner of the Buffalo dispensary where MedMen still owes rent dating back to February.
The company filed a lawsuit against MM Enterprises, and its state-owned subsidiary, MedMen NY in New York Supreme Court, Erie County, on Sept. 12. They are seeking $69 717 in unpaid rent, and other charges. They claim that a 10-year contract signed in May 2018 remains in effect.
The lawsuit notes that the lease requires monthly rent payments of $7 279 and states “Defendants have broken their agreement with Plaintiff by not paying as agreed.”
MedMen’s spokesperson did not immediately respond Friday to requests for comment. According to court records, no hearings have been scheduled for the suit.
It’s unclear, however, if ALS Main and Transit, one of the many MedMen creditors to whom the company owes over $500 million, will ever be paid.
The value of MedMen’s assets is between $30 and $40 million. However, the company still owes Superhero Acquisition L.P. $262.3 millions and another $59.9 to Hankey Capital LLC.
Ormond summarizes that ALS Main and Transit claims fall into a third category. He notes that MedMen owes unsecured debts of $164.5 millions to various landlords and vendors.
Ormond has been trying to find buyers for MedMen’s facilities in order to settle some of these debts. Ormond’s monthly report, filed in California on August 15, stated that he had found buyers for MedMen’s two dispensaries located in Chicago and Las Vegas. The purchases were in progress, but they hadn’t been formally closed as of mid-August.
Ormond has not been able, in Massachusetts, to find a buyer for the Boston dispensary of the company. If a serious buyer doesn’t materialize soon, he wrote, “This asset is likely to be abandoned next month.”
MedMen has several dispensaries in California that are still open and serving customers, including stores located in downtown Los Angeles and West Hollywood, as well as San Diego. According to the MedMen websiteCustomers can still order at six dispensaries including four in California, and two in Nevada.
Other MedMen dispensaries, including MedMen’s Beverly Hills and Venice locations, LAX, Santa Ana, and Abbott Kinney, have been closed or transferred to their original owners. They are not part of the receivership estate. The San Diego shop in the Torrey Pines area is up for auction while its landlord is pursuing an eviction order. A second San Diego location has already been closed.
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