TerrAscend (one of the bigger players in the U.S. cannabis space) is exiting Michigan.
They’re closing 20 dispensaries, winding down four cultivation and processing facilities, and laying off more than 230 workers.
It’s a major shift, and one that says a lot about where the market stands right now.
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According to filings with the state, over 230 employees will lose their jobs as part of this exit.
Some will stay on temporarily to help with the transition, but for most, this is a full layoff.
It’s a tough blow for folks working in what was once seen as a fast-growing industry.
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The company is offloading everything it owns in Michigan, including:
– 20 dispensaries (under Gage and Cookies branding)
– 4 cultivation and processing sites
– Real estate tied to those operations
They expect to complete the exit in the second half of the year.
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So why abandon Michigan?
TerrAscend’s executive chairman, Jason Wild, said Michigan is “an extremely difficult market” and that their “resources can be better utilized” elsewhere.
It’s a pretty clear sign the company sees better margins and less competition in other states.
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A few years ago, Michigan was one of the fastest-growing cannabis markets in the country.
But that growth came with consequences: there’s now an oversupply of product, prices have dropped, and the number of dispensaries has exploded.
It’s become harder for businesses (even well-known ones) to stay profitable.
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Even with the usual April bump from 4/20, sales are down.
According to state data, recreational cannabis sales through May totaled $1.3 billion – down 2.6% from the same time last year.
It’s the first time Michigan’s legal cannabis market has shown signs of contraction since launching in 2019.
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TerrAscend bought Gage Growth Corp. for $545 million in 2022.
At the time, Michigan was seen as a smart play – lots of consumer interest, and room to grow.
But just three years later, the company is walking away from that entire investment.
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Among the shuttered locations are Gage’s Detroit and Ferndale dispensaries, as well as a Cookies store in Detroit.
Cultivation sites in Warren and Harrison Township are also being closed or sold off.
These weren’t small operations. They were flagship stores in key areas.
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PharmaCann also closed its Warren facility earlier this year, resulting in 200+ layoffs.
Other multistate operators have been quietly scaling back their Michigan presence, too.
And it’s not just cannabis – food and manufacturing plants have been shutting down across the state as well.
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The company says it will now focus on six markets:
– New Jersey
– Maryland
– Pennsylvania
– Ohio
– California
– Toronto
They seem to be doubling down on places where pricing is stronger and competition is a little less intense.
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By exiting Michigan, TerrAscend says it will reduce its total workforce by about 21%.
That’s a HUGE cut, and it shows just how much of their business was tied to this one market.
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When a company pulls out like this, it affects more than just its own staff.
There’s also the loss of local tax revenue, less spending in surrounding businesses, and a sense of instability for people working in cannabis more broadly.
It’s a reminder that even “fast-growing” industries have cycles.
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Other cannabis companies across the U.S. are facing similar challenges, especially with declining prices, inflation, and federal roadblocks.
So while Michigan might be the most visible example right now, it’s not the only one.
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It’s easy to label this as a failure, but it might be more accurate to call it a recalibration.
Markets that grow too quickly often hit a point where only the most efficient operators survive.
We’re probably seeing that play out here.
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I don’t think this is the end of cannabis in Michigan – far from it.
But it is a reminder that rapid growth doesn’t always translate to long-term stability.
For businesses, it’s a tough environment to navigate. For workers, it’s a painful transition. And for consumers? It might mean changes in where (and how) you shop.
What do YOU think?
Have you noticed prices dropping? Is your favorite dispensary still going strong?
Drop your thoughts in the comments!
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