San Francisco-based cannabis technology giant Ease Technologies, once valued at more than $700 million, has laid off more than 500 employees and plans to close later this year, SF Gate reported. The company was founded in 2014 and provides on-demand delivery services in California and Michigan.
Eaze CEO Cory Azzalino said in a LinkedIn post on Monday that the company plans to auction off its assets in early August and shut down permanently by Dec. 31. ” he said.
“As we move forward with the transfer of company assets, we will continue to provide greater clarity on the timing of events.” “We anticipate providing an update regarding next steps on or about November 15, 2024.” We have already notified the unions and will participate in negotiations regarding the impact of the downsizing” – Azzarino, in a letter to employees.
Jim Araby, vice president of the International Union of Food and Commercial Workers (UFCW), told SF Gate that the closure of Eads and the resulting loss of approximately 500 union jobs is a matter of concern to “state legislators and the government. This should serve as a wake-up call.” More action needs to be taken. ”
Ease's bankruptcy marks the latest downfall for California's cannabis industry giant as the market continues to struggle with overregulation and competition from illegal cannabis sources.
California-based MedMen, which once held retail pharmacy licenses in state markets across the country, filed for bankruptcy earlier this year and went into receivership with more than $410 million in debt. Last June, Herbl, formerly California's largest cannabis distributor, ceased operations and entered receivership.
In 2021, two former Eads consultants were convicted and sentenced to prison for defrauding banks into processing more than $150 million in cannabis purchases.
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graham abbott
Based in Portland, Oregon, Graham is the editor-in-chief of Ganjapreneur. He has been writing about the state of legalization since 2012 and has contributed to Ganjapreneur since its official launch in 2014.
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