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.