Marijuana MSO Columbia Care shutters stores, reduces head count

New York-based marijuana multistate operator Columbia Care is laying off 25% of its corporate headcount as part of a larger effort to slash costs, reduce cash burn and improve performance.

According to a news release, the company consolidated cultivation operations in California, Colorado and Pennsylvania.

Columbia Care shuttered three unprofitable stores in Colorado and one in California and announced in December it was laying off 73 workers in Pennsylvania.

Chief Executive Officer Nicholas Vita said the company intends to bring profitability to Cresco Labs, which said last March it plans to acquire Columbia Care in an all-stock deal valued at $2 billion.

The closing of that deal is dependent on the companies’ divesture of a number of assets in several states, including those that rapper and business mogul Sean “Diddy” Combs agreed to buy last fall.

The acquisition was scheduled to close last month but has now been delayed to March, creating some skepticism that it will actually close.

“We continue to look forward to our merger with Cresco Labs and to providing updates as the transaction progresses, and as we deliver on our commitment to be one of the best companies in the sector,” Vita said in a statement.

Cannabis MSOs and tech companies have laid off hundreds of employees in the past year.

Columbia Care’s revenue grew 2.4% between the second and third quarters of this fiscal year, but the company reported a loss of $38.3 million in the previous quarter.

Shares of Columbia Care (CCHWF) were trading Thursday on the over-the-counter markets at 73 cents.

Source: https://mjbizdaily.com/marijuana-mso-columbia-care-shutters-stores-reduces-head-count/