License Problems Lead to Layoffs at Cannabis Chain

A marijuana baron in Colorado has been forced to lay off roughly 45% of his workforce because his business licenses have all been put on hold by the state.

Shawn Phillips, who owns nine cannabis shops around the state and holds 39 licenses, was told by the state’s Marijuana Enforcement Division (MED) that his applications for several new permits were denied. This resulted in his other licenses being put in a “sort of pending status,” the Denver Post reported.

As a consequence, Phillips has had to tighten his company’s belt, and he decided to lay off 65 employees – most at his cultivation facilities.

“It created a huge financial burden on the company and the loss of revenue that we can’t put in the ground,” Phillips told the Post. “And it put us in a situation where we had to make a business decision.”

Phillips told the Post he hopes that the licensing issues get sorted out and he’ll be able to rehire the employees, so it may only be a temporary situation. His nine shops are still open for business.

But there was no clarity from the MED, which told the Post only that it couldn’t comment because the situation involved an ongoing investigation.

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7 comments on “License Problems Lead to Layoffs at Cannabis Chain
  1. Mountzioncollective on

    I would be pretty embarrassed if I was as rich as this guy and the FIRST response he has is to to fire 65 people, then like hiring and firing poor people is a game he says he’ll just hire them back if it all works out. What a douche. If he made more reasonable business decisions he wouldn’t have so ridiculously jumped the gun (how could a professional manager over hire by 65 people than their CURRENT and EXPECTED business model would require.

    39 licenses? Does the guy have some sort of compulsive disorder of applying to licenses, I mean really what was his end goal…a 100? A 1000 lol? Man it’s so sad to see people waste their life away…enjoy ur life people u don’t need to be a BILLIONIARE to be happy! A few million is surely enough 🙂

  2. Numb Nuts on

    indeed that is a lot of ego driving for licenses.
    similar to weeding out the weak seedlings and clone stock. a great company needs great employees.
    looks like he’s making a company good to great. read the book. its all been done before.
    no scene in reinventing the wheel here folks.

    looks to me he cares about his employee’s
    but only “A” players will make the company great
    just like in clone selection: grade “A” rooters will produce the best results.

    it is unfortunate that there is such a thing as grade b, c and lazy performers.

  3. STWC on

    Perhaps the license denials also have to do with the fact that there happens to be a publicly traded company called Strainwise, Inc. that has a CEO with the same name as the CEO of Strainwise. Also look to see Shawn’s wife makes 90K a year as the CFO and director.

    There is more to this story…

  4. Gunny HiWay on

    Just another example of the blatant GREED that proliferates the “commercial market”.
    I grow SEEDS and have met many “502 grower/producers” in Washington State.
    Almost ALL have been GREEDY MORONS who know very little about THE PLANT ITSELF and are ONLY interested in as much $$ as they can beg, borrow or steal.

  5. Aloha Jay on

    Easy now there Gunny…I’m a WA 502 P/P and “she’s my lover, not a whore”! but, yes i know what you’re referring to ;p by tha way brother, can u spare a dime?! ALOHA!

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