Herbl Collapse Signals Wider Fallout In California Marijuana Industry
Herbl’s unprecedented collapse is also a test case for the U.S. marijuana industry
California-based marijuana distribution giant Herbl is going to the courts in a bid to recover some of the roughly $10 million it claims retailers owe the company, which fell into receivership in June.
At the same time, according to court and investor documents, at least one of Herbl’s former brand partners – Sunset Connect – is suing to recover a six-figure debt the San Francisco maker of pre-rolls claims that Herbl owes and refuses to pay, records show.
The unprecedented struggle over what’s left of the once-prominent distribution company is a wave in a broader ripple effect that observers fear could sink more California cannabis businesses amid a cash squeeze plaguing the state’s marijuana industry.
In terms of what’s left of Santa Ana-based Herbl, retailers, brands, investors and creditors as well as state and federal tax collectors appear to be in a race to be the first to collect money from a rapidly vanishing pot.
Herbl’s unprecedented collapse is also a test case for the U.S. marijuana industry as a whole.
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