State's first cannabis receivership, selloff shows lack of options for struggling businesses
The acquisition of Ermont Inc.'s assets, approved by the state's Cannabis Control Commission last week, marks the first time a Massachusetts cannab...
The acquisition of Ermont Inc.'s assets, approved by the state's Cannabis Control Commission last week, marks the first time a Massachusetts cannabis company has been liquidated through a court-appointed receivership. Because marijuana is still illegal at the federal level, businesses in the industry cannot file for bankruptcy protection, which takes place in federal court. The selloff demonstrates what few options exist for financially insolvent cannabis companies. Ermont, a Quincy medical cannabis operator founded in 2016, ran into financial trouble after an influx of recreational marijuana dispensaries opened.