A Year of Cannabis WARN Filings: Closures, Restructuring and Job Losses
|
|
Cannabis operators filed new WARN notices in Florida and California during the week of July 20, affecting 269 workers across four cultivation, processing and manufacturing facilities. Florida’s WARN database reported two Parallel Florida closures affecting 211 workers, while California’s latest WARN report identified two CraftForce Services closures in Santa Rosa affecting ~60 workers.
WARN notices are advance notifications submitted under the federal Worker Adjustment and Retraining Notification Act or applicable state laws before certain mass layoffs, plant closures or relocations. Covered employers generally must provide written notice at least 60 days before the employment action, giving workers, state agencies and local officials time to prepare and coordinate employment services.
The recent filings add to a broader series of workforce reductions across the cannabis industry. Cannabis operators also face a narrower set of restructuring and financing options than businesses in most federally legal industries. Plant-touching companies generally cannot reorganize under Chapter 11, remain subject to Section 280E, and often have limited access to conventional banking, federal lending programs and other forms of business assistance.
Recent WARN Act filings show how those structural constraints can intersect with falling wholesale prices, lease defaults, tax changes and company-specific financial distress. Since mid-2025, Emerald Intel has identified more than a dozen WARN filings by cannabis operators across eight states, representing approximately 1,400 affected workers.
Five of the identified filings were reported in July 2026, making it the most active month in the period reviewed. The filings are not attributable to a single cause, but several recurring patterns emerge: cultivation retrenchment, operator restructuring, lease-related distress and pressure from state-specific market conditions.
Filings since mid-2025
The first major filings in this period appeared in summer 2025:
- TerrAscend filed a Michigan WARN notice on June 30, 2025, as it exited the state. The action covered 20 dispensaries and four cultivation and processing facilities and affected approximately 230 to 236 workers. Executive Chairman Jason Wild attributed the exit to oversupply and falling prices.
- AYR Wellness filed WARN notices on July 31, 2025, covering 157 workers in Massachusetts and approximately 82 workers at two Nevada cultivation facilities. The closures occurred as part of a restructuring support agreement and operational wind-down.
Additional filings followed through the winter and spring, including multiple PharmaCann cultivation closures, a Michigan facility closure that C3 Industries attributed to the state’s new wholesale tax, and actions involving Ascend Wellness and Etain.
In July 2026, five more filings appeared across California, Colorado, Florida and New Jersey.
Cannabis WARN Filings and Facility Closures
Mid-2025 through July 2026 · 14 filings · 8 states · ~1,400 workers · Worker bars scaled to headcount
| Company | State | Filed / Effective | Workers | Reported context |
|---|---|---|---|---|
| TerrAscendGage Cannabis · Cookies · Lemonnade · Pinnacle Emporium | MI | June 30, 2025eff. 2025 | ~233 | Full Michigan exit — 20 dispensaries, 4 cultivation/processing sites; oversupply and falling prices |
| AYR WellnessSira Naturals · UFCW Local 1445 | MA | July 31, 2025eff. Sept. 29, 2025 | 157 | RestructuringMilford cultivation + 4 dispensaries; wind-down |
| AYR Wellness | NV | July 31, 2025eff. 2025 | ~82 | RestructuringTwo Sparks cultivation facilities; same wind-down |
| Company | State | Filed / Effective | Workers | Reported context |
|---|---|---|---|---|
| PharmaCannVerilife · Teamsters Local 777 | IL | ~Nov. 2025eff. Jan. 13, 2026 | 82 | Lease defaultDwight cultivation closure; IIP default, site re-let to Grown Rogue |
| C3 IndustriesHigh Profile | MI | Dec. 15, 2025eff. Feb. 14, 2026 | 62 | 24% taxWebberville grow; CEO publicly attributed closure to Michigan's new wholesale tax |
| PharmaCannLivWell | CO | March 20, 2026eff. May 20, 2026 | 132 | Lease defaultDenver cultivation exit; CO dispensaries sold to Vireo Growth |
| PharmaCannUFCW Local 1776 | PA | March 20, 2026eff. May 20, 2026 | 60 | Lease defaultOlyphant closure under IIP settlement terms |
| Etain LLCFluent Corp → Vireo | NY | May 5, 2026eff. Aug. 3, 2026 | 37 | Chestertown cultivation/packaging; reason listed as "economic" |
| Ascend WellnessAscend Cannabis Group | MI | ~May 2026eff. June 26, 2026 | 94 | Lansing grow permanently closed after Dec. 2025 grow-light fire |
| Company | State | Filed / Effective | Workers | Reported context |
|---|---|---|---|---|
| The Cannabist Co.fka Columbia Care · site fka Medicine Man | CO | July 14, 2026eff. Sept. 11, 2026 | ~50 | Ch. 15Denver grow closure during Chapter 15 proceedings (~$270M debt); restructuring conducted via Canadian courts |
| The Cannabist Co.Columbia Care NJ Realty LLC · UFCW Local 152 | NJ | July 14, 2026eff. Oct. 11, 2026 | 86 | Ch. 15Two Vineland cultivation sites; NJ operations sold to Vireo |
| NorCal CannabisQueen City Staffing / GB2, LLC | CA | July 14, 2026eff. Sept. 13, 2026 | ~49 | Santa Rosa shutdown; mostly packaging & trimming staff |
| ParallelParallel Florida LLC · Surterra Wellness | FL | July 20–21, 2026layoffs began July 6 | 211 | Two Tampa Bay cultivation/processing sites (330K+ sq ft) permanently closed; no reason given |
| CannaCraftCraftForce Services · Groundwork Holding · UFCW Local 5 | CA | July 22, 2026eff. Sept. 20, 2026 | ~60 | Santa Rosa; CEO cited a "race to the bottom" — declining sales, illicit-market competition |
Compiled by Emerald Intel from state WARN notices, company disclosures, court filings, and contemporaneous reporting.
Recurring Patterns in the Filings
Cultivation and processing account for most identified job losses
Most of the filings involve cultivation, manufacturing, packaging or processing facilities rather than stand-alone retail operations. That concentration is consistent with pressure on vertically integrated operators to reduce fixed production capacity when wholesale supply is available at comparatively low prices.
Wholesale price compression remains significant
Colorado illustrates the economic pressure facing cultivators. The state's average market rate for retail flower fell to $607 per pound in the most recent quarter, compared with $655 one year earlier and $1,721 at the 2021 peak—more than 65% below the 2021 level. The state has also lost approximately one-quarter of its licensed cultivators over the past two years.
Lease distress appears repeatedly
PharmaCann's Illinois, Colorado and Pennsylvania filings were associated with lease defaults involving Innovative Industrial Properties. The related litigation settlement required the surrender of properties by May 20, 2026, with lease-default and litigation disclosures preceding facility closures.
Michigan operators have attributed job cuts to the wholesale tax
C3 Industries CEO Ankur Rungta publicly attributed the company's Webberville closure to Michigan's new 24% wholesale tax. Higher Love also attributed its announced layoffs to the tax.
Federal bankruptcy restrictions affect restructuring options
Plant-touching cannabis companies generally cannot use Chapter 11 in the same manner as federally legal businesses. Recent operators have relied on alternative mechanisms including Chapter 15 proceedings, state receivership, and out-of-court restructuring agreements. These alternatives differ materially from conventional Chapter 11 and may create additional complexity for employees, creditors, landlords and asset buyers.