A New York-based subsidiary of bankrupted marijuana multistate operator MedMen Enterprises is facing a lawsuit for failing to pay rent in the latest allegation against the troubled company.
ALS Main and Transit, an affiliate of Rochester-based Flaum Management, filed a lawsuit against MedMen NY Inc. seeking roughly $70,000 in unpaid rent for a former MedMen retail location in Williamsville, New York, according to Buffalo Business First.
The retailer was evicted from that location last month, the news outlet reported.
MJBizDaily in April chronicled the cash-strapped company as it entered bankruptcy proceedings in Canada and placed its California retail assets in receivership, the first steps to unwind the business and sell off assets in liquidation.
Regulatory filings with the U.S. Securities and Exchange Commission show the company has been involved in several significant lawsuits related to unpaid invoices, many of them concerning real estate.
The plaintiffs have included:
- Business brokers.
- Office furniture vendors.
- Several landlords in New York and elsewhere.
In a monthslong investigation that detailed MedMen’s widespread practice of not paying invoices, abruptly closing stores and terminating employees without warning, MJBizDaily in February confirmed the company has spent millions of dollars to settle alleged breaches of real estate contracts and related damages for unpaid rent.
MedMen’s bankruptcy filing preceded several store closures in California and other markets, widespread layoffs and a management shake-up.
