Report: Trend of Distressed Michigan Dispensaries Closing Without Paying Vendors – Green Market Report

A trend has begun in the Michigan marijuana community of financially strapped dispensaries closing up shop quietly without paying off sizable debts, leaving vendors with little recourse but to try and sue.

According to, “cut-and-run” situations where dispensary owners simply disappear without paying for inventory or other debts have become increasingly common, with upwards of 14% of the state’s cannabis retailers – or about 125 shops – having closed down or relocated since Dec. 2019, when the recreational market launched.

“It’s a problem that’s been going on at least a year (and) I think that it’s just hitting a more critical point now,” attorney Denise Policella of the Cannabis Attorneys of Michigan told “We get a whole bunch of clients calling us, saying we need to sue for this, we need to collect on that. We get a barrage of demand letters and collection letters.”

The issue has become pervasive enough that it’s caught the attention of state marijuana regulators, and now the Cannabis Regulatory Agency (CRA) is weighing new rules to handle businesses or individuals that have tried to welsh on industry debts and then re-enter the trade. And industry insiders have also taken it upon themselves

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