It’s still unclear what the company’s new owners plan to do with it after the end of the year.
The biggest marijuana delivery company in California is calling it quits after a 10-year run.
Eaze, which was founded in 2014, will be shuttered by Dec. 31, CEO Cory Azzalino said in a post to LinkedIn on Sunday, and said he notified all employees on Monday that their time is likely limited.
The parent company of Eaze, Stachs LLC, “will be winding down operations, with the full closure expected to take place on or around December 31, 2024,” Azzalino wrote to Eaze employees.
The closure comes after the company was sold at auction in August for $54 million, Azzalino previously told Green Market Report, and it’s not clear yet what the new owner – a company called FoundersJT, run by billionaire tech investor James Henry Clark – intends to do with it after the end of the year.
“Management is working with the new ownership group of the assets, who will determine whether operations will reopen” next year, Azzalino wrote, adding that there will be an update shared by Nov. 15.
That likely means the company’s roughly 500 employees will soon be out of work, SFGate reported.
But MJBizDaily also reported that FoundersJT may have different plans depending on the outcome of the Florida election next month, where voters will decide whether to legalize recreational marijuana, according to Azzalino.
Although Eaze was a booming success prior to the 2018 implementation of Proposition 64 – the voter-approved ballot measure that legalized recreational marijuana and authorized a new regulatory and taxation system – the company struggled after that to maintain profitability. Their not alone, as plenty of other high-profile companies have also failed recently, such as MedMen, Herbl, High Times and now apparently StateHouse, formerly known as Harborside.
In the post-pandemic years, Eaze has had its share of troubles, including a former CEO being convicted of fraud, high turnover rates among company leadership and lengthy litigation between investors.
H/T: www.greenmarketreport.com
