In the latest domino to fall in the struggling California cannabis industry, the parent company of multiple dispensaries is selling off its assets.
Gold Flora, which is based in Costa Mesa, is going to be placed into a receivership so its 16 California dispensaries and its 10,000-square-foot cultivation campus can be sold off, the Los Angeles Times reports.
Gold Flora’s dispensaries include Calma in West Hollywood and Airfield Supply Co. in San Jose.
The selloff will help the company pay its bills, as in its most recent quarterly filing, the company listed $273.1 million in liabilities with less than $210 million in assets.
In a statement announcing the decision, founder and CEO Laurie Holcomb said those debts stem from a 2023 merger with another cannabis company, TPCO.
“While Gold Flora remains a leading operator and retailer in the cannabis market in California with over $100 million in annual revenues, the liabilities on our balance sheet, many of which are due to lawsuits we inherited with the TPCO business combination, forced us to file for a voluntary receivership that is necessary to achieve an orderly sale of the business,” Holcomb said. “We believe Gold Flora’s business remains valuable and sound, but receivership is our only option to sell the business as a going concern as opposed to seeing it broken up by different creditors, which we believe is not in the best interest of any stakeholder.”
Gold Flora follows prominent cannabis brands like MedMen in collapsing under the weight of hundreds of millions of dollars in debt.