News Summary
TerrAscend Corp. will close its 20 dispensaries and four cultivation facilities in Michigan, leading to the layoff of 236 employees. The company’s decision, driven by market challenges and a significant operational evaluation, marks a 21% reduction in its workforce. As sales of recreational cannabis decline, TerrAscend plans to divest its Michigan assets while maintaining operations in other states. This move reflects broader struggles within the Michigan cannabis market, as many operators face oversupply and decreased profit margins.
Detroit, MI – TerrAscend Corp. is set to close all its 20 dispensaries and four cultivation and processing facilities located in Michigan, resulting in the layoff of 236 employees. The company filed a Worker Adjustment and Retraining Notification (WARN) with the Michigan Department of Labor and Economic Opportunity on June 30, marking a significant reduction in its operational footprint within the state.
The closure of these facilities is anticipated to be finalized by the end of the third quarter of 2025, leading to a projected workforce reduction of about 21% across the company. TerrAscend plans to sell all of its Michigan assets, including real estate, to manage and reduce existing debt obligations.
According to the executive chairman of TerrAscend, Jason Wild, the decision to exit the Michigan market comes after evaluating the operational efficiency of the company. The Michigan cannabis market has been facing numerous difficulties, notably an oversaturated market accompanied by declining profit margins. Sales of recreational cannabis products in Michigan have decreased by 2.6%, totaling $1.3 billion through May this year compared to the same period last year.
TerrAscend’s operations in Michigan incorporated several prominent brands such as Gage Cannabis, Pinnacle Emporium, Cookies, and Lemonnade. The closures will affect dispensaries spread across cities including Detroit, Ferndale, Lansing, Kalamazoo, Traverse City, and Grand Rapids. Additionally, the affected cultivation and processing facilities are located in Bay City, Harrison Township, and Warren.
While TerrAscend withdraws from Michigan, it will continue to maintain its presence in other states. The company operates 19 dispensaries and four processing facilities across New Jersey, Maryland, Pennsylvania, Ohio, California, and Toronto, Ontario. This strategic shift highlights TerrAscend’s focus on markets that they believe offer better operational opportunities amid the challenges present in Michigan.
The Michigan cannabis industry has seen other multi-state operators follow suit, reducing or discontinuing their operations in the state as they grapple with similar market challenges. These challenges include increasing oversupply and declining prices, which have contributed to financial difficulties for many cannabis operators in the region. As a result, TerrAscend’s decision only reinforces the trend of multistate operators reevaluating their footprint in competitive market landscapes.
TerrAscend initially entered the Michigan market in 2022 when it acquired Gage Growth Corp. for $545 million, signaling an ambitious expansion at the time. However, the ongoing struggles faced by Michigan’s cannabis landscape have led to the necessity for a reconsideration of its business strategies.
The impending closure of TerrAscend’s Michigan operations not only reflects the company’s realignment priorities but also points to the broader challenges affecting the cannabis industry in various regions. The shift will inevitably impact many employees, families, and local economies reliant on these jobs as the company concludes its operations.
In summary, TerrAscend’s closure of its Michigan sites marks a notable shift in its operational strategy, driven by declining market conditions and financial responsibilities, highlighting the realities faced by cannabis firms as the industry evolves.
Deeper Dive: News & Info About This Topic
- Free Press: TerrAscend Exits Michigan Market
- ABC 12: Marijuana Shops Closing
- Metro Times: Cannabis Giant Plans Closures
- Google Search: Michigan Cannabis Market Conditions
- Wikipedia: Cannabis in Michigan
Author: STAFF HERE DETROITMI WRITER
DETROIT STAFF WRITER The DETROIT STAFF WRITER represents the experienced team at HEREDetroitMI.com, your go-to source for actionable local news and information in Detroit, Wayne County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Movement Electronic Music Festival, Detroit Grand Prix, and America's Thanksgiving Parade. Our coverage extends to key organizations like the Detroit Regional Chamber and Focus HOPE, plus leading businesses in automotive and healthcare that power the local economy such as General Motors, Ford Motor Company, and Henry Ford Health. As part of the broader HERE network, including HEREGrandRapids.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
