MedMen Continues Restructuring Efforts Amidst 34% Payroll Reduction
ATB will assist MedMen in evaluating opportunities
MedMen Enterprises Inc., a cannabis retailer with operations across the U.S., continues to make progress in its restructuring efforts. Efforts to date have been effective, resulting in a return to positive adjusted EBITDA and a 34% reduction in payroll costs across its retail locations, cultivation centers, and corporate headquarters in the most recently reported quarter.
Along with rightsizing the expense structure, the company continues to make progress on localization of store assortments and improving the product quality and profitability of its cultivation centers. Implementation later this spring of a new POS system and loyalty platform will drive increased store efficiencies as well as significantly more meaningful customer engagement.
In addition, MedMen announced Feb. 17 it has retained ATB Capital Markets Inc. to assist in the strategic review and potential sale of one or more of the company’s noncore assets in Arizona, Illinois and Nevada. ATB will assist MedMen in evaluating opportunities to divest certain retail and cultivation assets in order to bolster liquidity and maximize shareholder value with an asset-light model.
Assets under strategic review include:
Arizona: vertically integrated operations comprising of one dispensary located in Scottsdale and a 20,000-square-foot cultivation and production facility located in Mesa.
Illinois: two dispensaries located in Oak Park and Morton Grove.
Nevada: two dispensaries located in Las Vegas.
