Restructuring cannabis firm MedMen taps interim CEO, withdraws guidance

Just Released! Get realistic market forecasts, state-by-state insights and benchmarks with the new 2024 MJBiz Factbook member program, now with quarterly updates. Make informed decisions.

Financially struggling MedMen Enterprises has retained a management advisory firm to help it restructure.

The Los Angeles-based company also tapped two executives from the firm, SierraConstellation Partners (SCP), to serve as MedMen’s interim CEO and chief operating officer.

The multistate marijuana operator said in a news release it hired SCP on an interim basis to “support the company in the development and execution of its turnaround and restructuring plan.”

As part of the engagement, Tom Lynch was appointed interim CEO and chief restructuring officer, succeeding the previous interim chief executive, Ryan Lissack.

Lissack took the reins of MedMen on an interim basis after co-founder Adam Bierman resigned as CEO on Feb. 1.

Lynch is a partner and senior managing director at SCP, also headquartered in L.A., and previously served as chair and CEO of Frederick’s of Hollywood Group, a publicly traded specialty retailer. More recently, he was the interim CEO of David’s Bridal.

In addition, Tim Bossidy, director at SCP, has been appointed MedMen’s interim chief operating officer.

Last month, MedMen released a quarterly financial report that detailed a whopping $96.4 million net loss in its fiscal 2020 second quarter.

In the news release, MedMen also said it:

  • Closed on $12.5 million in additional gross proceeds under its $250 million senior secured convertible debt facility led by funds affiliated with Gotham Green Partners.
  • Withdrew its fiscal year 2020 and 2021 revenue and store count guidance provided last Dec. 11 because of the coronavirus pandemic and its impact on retail operations in the company’s core markets. Medmen noted that “unanticipated delays in licensing, particularly in California and Massachusetts, have also impeded the company’s ability to achieve its revenue and store count targets.”
  • Withdrew its guidance tied to the company generating positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and free cash flow.

The company trades on the Canadian Securities Exchange as MMEN and on the U.S. over-the-counter markets as MMNFF.

For more of Marijuana Business Daily’s ongoing coverage of the coronavirus pandemic and its effects on the cannabis industry, click here.