When Greenhouse of Walled Lake opened in 2019, it catered to Michigan's medical marijuana market, and business was booming. Recreational marijuana sales began later that year statewide, opening the door to new customers — and competitors. As the state's cannabis market took off, new operators flooded in and profit margins thinned.
"We're oversaturated," said Jerry Millen, owner of Greenhouse. "Too much product, too many stores to the point where people are just giving the product away."
Michigan's marijuana industry is showing signs of strain as companies deal with oversupply, falling prices and tightening margins. And it's forcing some operators to scale back or shut down entirely: the most notable recent retreat from the once-booming Michigan market is Canadian cannabis giant TerrAscend.
In late June, the publicly traded corporation announced its "strategic exit" from Michigan, declaring it intended to sell or divest all its assets in the state, which include four growing facilities, 20 dispensaries and real estate. The net proceeds from that pullback, the company said, would be used to pay down its debt.
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