Posted on 11/19/2023 5:27:10 PM PST by Oldeconomybuyer
This spring, rumors were swirling that HERBL, one of California’s largest cannabis distribution companies, was on the verge of collapse. So Mike Beaudry, the company’s CEO, sent out an email on May 18 declaring that “these rumors are categorically not true. HERBL continues to be fully operational.” Less than a month later, HERBL had completely collapsed.
HERBL’s failure left a trail of damage that hurt small pot brands and shorted the state some $17 million in unpaid taxes. HERBL is only the latest high-flying California pot startup to crumble, following companies like Flow Kana, which raised $175 million in capital only to collapse, and MedMen, the California startup that earned a billion-dollar valuation calling itself the Apple Store of Weed only to find itself this year on the brink of financial ruin.
Observers in the industry say that HERBL’s demise shows how cannabis companies in California are forced to abide by a more difficult set of rules than other industries.
(Excerpt) Read more at sfgate.com ...
The pot market only works best between dealer and user.
It becomes unaffordable when you add a middle man.
Without exception government screws up every single thing it touches.
Every
Single
Thing.
L
How is Tegridy Farms working out?
So, are they going back to the old way, of getting it off the street from gang members?
The black market is thriving, and has nowhere near the overhead of the capitalist weed Market. Makes it hard to compete.
My law practice focuses on insolvency - and the pot related businesses I have dealt with remind me of another dreamlike business environment - microbreweries. No realistic brakes are applied in the business formation stages - so the lessons come in the crash and burn phase. Look out below!
The prices have never been better.
Not really Capitalist weed...fascist weed maybe...
That’s a blanket statement. Weed is cheaper, or free, in Oregon, post-legalization. You can buy expensive varietals if you want.
$17 million? who are dopes again? I get confused.
I’m sure the biggest cartel is doing just fine.
A simple rule for new businesses—never try to compete with free!
;-)
Markets will out. Californians can grow six plants, and some of them are the size of apple trees.
Like man they just like forgot to pay their taxes man, lay off
In the article it states several Marijuana suppliers are owed “hundreds of thousands of dollars that they will probably never get”
The business ‘acumen’ that can trust fellow pot industrialists to make good is amusing. Many of them probably drive EVs.
These items from a leading pot distributor are still around
https://www.google.com/search?q=cuisinart+pots&tbm=isch&ved=2ahUKEwiWpr25udGCAxWR1ckDHUPUBKIQ2-cCegQIABAA&oq=cuisinart+pots&gs_lcp=CgNpbWcQDDIFCAAQgAQyBQgAEIAEMgUIABCABDIGCAAQCBAeMgYIABAIEB4yBwgAEIAEEBgyBwgAEIAEEBgy
My favorite government incomitance story is when the IRS took over a brothel that had been in business for over a hundred years, The Mustang Ranch. They intended to run it to get the several million in unpaid taxes they claimed they were owed. It went belly up in short order. A senator commented, “Only the government could fail running a business that sells p*ssy and beer.”
Every grifter made a fortune while investors (fools) got burned. When I say grifter I refer to the politicians who got in on the ground floor because they could make a fortune before the collapse. Illegal growers pay off and never get touched...meanwhile a huge list of known weed smokers can now be viewed and used against them somewhere down the line...people are so stupid.
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