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Struggling Cannabis Firm Medmen Aims To Keep a Low Profile

cannabis firm medmen
MedMen’s location in West Palm Beach, Florida. (Image via Med Men’s Facebook account)

MedMen Enterprises (MMNFF), the cannabis enterprise, is currently going through some turbulent times. After encountering many woes in recent days, the executives turned to a new strategy aiming to facilitate the survival of the business. Latest reports reveal that the management has decided to specialize in retail stores.

MedMen now wants to close down farming and cannabis production activities striving to protect itself from a total meltdown. The CEO of the enterprise, Ryan Lissack, while explaining the new strategy, claimed that the cannabis business is vertically evolving. Hence, there is a need for the company to focus on the profitable part of the fragment value chain. 

The scaling on the business operations upward the value chain will most likely save the extending losses, which have increased from $18.7 million to $40.6 in the past few years. The MMNFF enterprise had a total revenue increase of 50% in 2019. This increase suggests that there is still potential for recovering from the loss. 

The company will now turn to outsourcing the growing and production of cannabis to its retail stores. It will also put its existing stores under the microscopic program to make sure they can generate profit. The CEO put it clear that the enterprises could not continue investing in the investments which are not producing near-term returns. 

Ryan Lissack assured the stakeholders that the new management is ready to salvage the cannabis company from collapsing due to huge loans borrowed to keep it running. For now, the business is embarking on signing significant deals with partners to help in raising capital for the regeneration of one of the finest cannabis dealers’ brands around the world.

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Robert Hill

Robert is an editor-in-chief from Chicago, IL, with vast experience writing about the cannabis industry. He mainly focused on covering general cannabis news, political news, and cannabis crime news worldwide.

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