The Cannabist Co. to Exit Delaware; Sell Assets in 6 Other States; Commence Bankruptcy Proceedings
The Cannabist Company Holdings Inc. (formerly Columbia Care) has officially announced it will commence bankruptcy proceedings and is moving to divest nearly all of its remaining operational assets across several key U.S. markets.
The New York-based multistate operator (MSO) stated that the move is part of a strategic restructuring intended to address its significant debt load and ongoing liquidity challenges. As part of this process, the company has entered into definitive agreements to exit the Ohio and Delaware markets and is actively seeking buyers for its assets in six additional states.
Market Exits and Asset Sales
Ohio: The company is selling its retail and cultivation interests to Holistic Industries.
Delaware: Assets are being acquired by Parma Holdco LLC, an affiliate of a Boston-based investment fund specializing in the U.S. cannabis industry.
Additional Divestitures: The Cannabist Co. has initiated plans to sell its equity interests and subsidiaries in New Jersey, Colorado, Illinois, West Virginia, Massachusetts, and Maryland.
These subsidiaries include cultivation, manufacturing, and retail operations. The company indicated that operations at these locations will continue as usual during the transition period and throughout the bankruptcy proceedings.
A Significant Shift for a Former Industry Leader
The filing marks a dramatic turn for a company that was once one of the most aggressive "land-grab" operators in the country. Following the collapse of its high-profile $2 billion merger agreement with Cresco Labs in mid-2023, The Cannabist Co. struggled to maintain the capital necessary to support its sprawling footprint.
"We have taken every possible step to streamline our operations and reduce our overhead," the company's executive leadership said in a statement. "However, the combination of high interest rates, a lack of federal banking reform, and the lingering tax burdens of 280E has made our current debt structure unsustainable."
