Cannabis companies collapsed in 2024

In 2024, several major U.S. cannabis companies experienced significant failures, marking a difficult year for the industry. Despite new state markets opening in places like New York and Ohio, several high-profile brands, including MedMen Enterprises, High Times, StateHouse Holdings, and Slang Worldwide, collapsed due to unsustainable growth and mounting debts.

MedMen, once a leader in California’s medical marijuana market, filed for bankruptcy after accumulating nearly $600 million in debt. High Times, famous for its cannabis culture magazine, also failed after its expansion into marijuana retail resulted in financial instability and the auctioning of its assets to settle a $29 million debt. Similarly, StateHouse Holdings, formerly Harborside, went bankrupt after struggling with a $116 million debt. Slang Worldwide, a major distributor of cannabis products, declared bankruptcy in November after its operations in key markets faltered.

While many larger businesses failed, there were some positive turnarounds, such as California-based Eaze, which was saved from closure through a $10 million investment from billionaire James Henry Clark. Despite these setbacks, the cannabis industry faces continuing challenges as companies navigate financial troubles and market uncertainty.