TALLAHASSEE, Fla. – In a move to “preserve cash and improve financial performance,” Trulieve Cannabis Corp. exited two markets in June. The company closed its remaining California dispensary and all three retail locations in Massachusetts.
In addition to closing the Massachusetts dispensaries, Trulieve intends to wind down cultivation and processing operations in the state by year’s end.
The downsizing followed a partial withdrawal from California and exiting the Nevada wholesale market last year. The company also has reduced production capacity across multiple markets “to match consumer demand.” Market pullbacks reduced the company’s workforce by about 16 percent in 2022, and another 128 employees are expected to be severed by the California and Massachusetts actions.
“These difficult but necessary measures are part of ongoing efforts to bolster business resilience and our commitment to cash preservation as we continue to focus on our business strategy of going deep in our core markets and jettisoning non-contributive assets,” said Chief Executive Officer Kim Rivers. “We remain fully confident in our strategic position and the long-term prospects for the industry.”
Rivers also indicated the company will continue to expand in markets that fit within its “regional hub” strategy. Trulieve currently conceives three hubs: Pennsylvania in the Northeast, Arizona in the Southwest, and Florida in the Southeast. The company opened dispensaries in Georgia in April, and Rivers told mg in March she expects to develop two more hubs and further expand into developed markets through mergers and acquisitions.
Trulieve is not the only retailer pulling out of highly competitive markets. Curaleaf exited California, Colorado, and Oregon early this year.
