MedMen’s properties in Illinois, Nevada, and New York are nearing sales, but the outlook in California and Massachusetts remains grim.
The controlled shutdown of MedMen Enterprises continues under California-based receiver Richard Ormond. In a recent update, Ormond indicated that sales of most former MedMen dispensaries are in progress, with some locations being abandoned and four in Southern California still operational.
In his report filed on July 12 with the Los Angeles County Superior Court, Ormond highlighted that MedMen’s significant debt of approximately $560 million remains mostly unpaid. This includes $262 million owed to Superhero Acquisition L.P. and $59.9 million to Hankey Capital, both senior secured lenders.
Ormond confirmed the estimated value of MedMen’s remaining assets is between $70 million and $100 million. However, he noted that major asset sales have not yet closed, though buyers are lined up for facilities in Illinois, Nevada, and New York, according to the Green Market Report.
In other states, Ormond has faced challenges.
No interest has been found for MedMen’s Boston dispensary. If a buyer is not secured within 30 days, the asset will likely be abandoned, and the premises returned to the landlord. In California, MedMen’s largest market, Ormond reported a mix of abandoning some storefronts and continuing operations at four dispensaries.
In the San Francisco Bay Area, the San Francisco shop has been returned to its landlord, and its business license is being transferred to MedMen’s former social equity partner. The San Jose dispensary is likely to be abandoned due to debt owed to the landlord, and the premises have been handed back.
In Southern California, Ormond continues to run MedMen dispensaries in West Hollywood, downtown L.A., Santa Ana, and San Diego’s Torrey Pines neighborhood. However, the Santa Ana location may close this month, and the Torrey Pines site is facing eviction.0 High-profile MedMen shops in Los Angeles, including those on Abbott Kinney and near LAX, have been returned to their original owners. Locations in Beverly Hills and Venice were handed over to the landlords. Another San Diego shop, in Kearney Mesa, was closed and will soon be returned to the landlord.
The downtown L.A. MedMen shop is current on rent and is still operating under an existing management services agreement. The West Hollywood dispensary continues to be managed by Ormond.
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