Canadian holding company Chalice Brands, doing business as Chalice Farms, filed court documents asking to place five of its Oregon subsidiaries under receivership.
The subsidiaries, which are part of Oregon’s third-largest retail chain, are unable to pay roughly $35 million in debts, Willamette Week reported.
Chalice filed documents with Multnomah County Circuit Court on May 23.
According to the filing, “This situation has led to an urgent liquidity crisis for the defendants.
“They are unable to pay key suppliers and have recently failed to make payments to creditors, including lenders, landlords, suppliers, and others.”
Toronto-based Chalice wants to restructure its vertically integrated business and find buyers for its assets.
In the meantime, the holding company has also asked a Canadian court for a stay that protects it from legal proceedings initiated by its creditors.
Chalice trades as CHALF on the U.S. over-the-counter markets.
The company’s listing on the Canadian Securities Exchange, CHAL, was suspended about a year ago because, according to Willamette Week, “it hasn’t filed its 2021 and 2022 financial reports.”
