Dispensary closures highlight the cannabis industry’s ongoing struggles. – Monterey County Weekly

Cannabis retailer Urbn Leaf’s Seaside dispensary is the latest to fall victim to the challenging business conditions facing the industry after shutting down late last month.

Statehouse Holdings, Urbn Leaf’s parent company, decided not to renew the Seaside location’s cannabis license and closed the store, at 680 Broadway Ave., on Aug. 26, according to Statehouse’s second-quarter financial statements. Urbn Leaf was one of three dispensaries on Broadway Avenue and one of six in Seaside and neighboring Del Rey Oaks, making the area a local hotspot for cannabis purveyors since Seaside began permitting dispensaries in 2017.

Urbn Leaf and its landlord had invested around $1 million into building out a sleek storefront and 6,400-square-foot retail space and upgrading the building’s infrastructure, says Peter Baird of Mahoney & Associates, the property’s landlord and listing brokerage.

Yet Statehouse has been dealing with many of the same headwinds that have impacted the cannabis sector at large – namely, overproduction that has hurt prices, illegal-market competition that has hindered sales, and taxes and regulations that industry players claim have made it difficult to turn a profit.

In its second-quarter earnings report, Statehouse disclosed quarterly revenues that were down 27 percent year-on-year, including retail revenues that fell 30 percent from the previous year.

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