The spread of COVID-19 has seen ordinarily stable segments of the economy rival the mayhem of the fledgling cannabis industry. Consistent with their notoriety, the past few weeks have impacted heavily the still emerging cannabis industry.
Here’s a glance one story in the pandemic-plagued cannabis industry you may have missed:
Green Growth Brands Furloughs 800 Employees
The spread of COVID-19 across North America couldn’t have come at worse time for Green Growth Brands (GGB.CN)(GGBXF).
The Ohio-based cannabis company is selling a 80 percent stake in its CBD business, which includes booth stores in 195 shopping centers in the United States. Green Growth Brands reported BRN Group as a potential purchaser in late February, and anticipated that a deal would close following a 30-day “go shop” period. Up until now, no purchaser has been reported. Interim CEO Randy Whitaker told Yahoo Finance Canada that a sales is still anticipated regardless of the overwhelming plunge in shopping center traffic brought about by the rapidly spreading COVID-19 pandemic.
Green Growth Brands declared it would temporarily close all its shopping center locations on March 19 to protect its employees, and it also suspended online CBD purchases. Subsequently, Whitaker said Green Growth Brands fired 800 people. He said the reviving of the kiosks will be to a great extent subject to the choices of a potential purchaser.
“We made a transition to fire all representatives that were in that business,” Whitaker disclosed to Yahoo Finance Canada in a meeting.
He said the consolidated impact of the CBD business’ negative income, and the conclusion of scores of shopping centers, was to a great extent behind the choice. He additionally said that a payroll delay occurred, but checks would go out in 24 hours.
Green Growth Brands intends to shift its efforts to dispensaries in Nevada, Massachusetts and Florida.