A cannabis company that filed for bankruptcy in April is being sued for rent by its Williamsville landlord, which evicted the weed dispensary last month.
ALS Main and Transit LLC — an affiliate of the Rochester-based property management company, Flaum Management — recently filed a suit against MedMen NY INC. for about $70,000. The same company evicted MedMen on Aug. 5, according to a notice posted on the retail store window by the Erie County Sheriff’s Office.
MedMen, a medical marijuana company that operates in multiple states, moved from South Union Road in Williamsville into the space at the corn of Main and Transit in 2019. The company was founded in 2010 and went public in 2018.
However, it filed for bankruptcy in Canada in April, which led to the dissolution of its business including its U.S. subsidiary based in Los Angeles. According to a Forbes report, the company expanded quickly and took on significant debt, but it also had other problems. In the last few years, the company was tied up in legal battles with accusations it was carrying weed across state lines. The legal challenges created plenty of turnover at the top, including five CEOs in the last four years.
According to the lawsuit, MedMen signed a 10-year lease in May 2018 for the Williamsville property, which has about 2,500 square feet. But MedMen “failed to pay as agreed,” the lawsuit alleges. The property owner is seeking $69,717 in damages along with legal and court fees.
H/T: www.bizjournals.com
