A cannabis store was bought out by a competitor and had a 80%-off out-of-business sale

Since all of the stores will be converted to the larger company, the previous cannabis company had to get rid of all of their products as quickly as possible.

Corporate economics can get ruthless sometimes, especially when you’re looking at large conglomerates or companies formed out of investment groups. With venture capitalism, a lot of good companies get bought out, gutted, and resold for a profit. This happened with my city’s local newspaper where I was employed for six years following high school. While they were once a subsidiary of the New York Times, the famed newspaper had to sell off a lot of their assets following the death of physical newspapers amid the Great Recession and the expansion of digital media. They sold the paper to a venture capital company that got the company back into the black on their balance sheets. But the real problems came when they sold the now-profitable paper to a much more ruthless venture capital group. They gutted the staff and laid most people off with no warning before other cost-cutting measures were put into place. It’s sad watching companies cannibalize others, especially in the marijuana industry. The biggest dispensary company in our state just grew bigger after buying out one of their competitors last month. Since all of the stores will be converted to the larger company, the previous cannabis company had to get rid of all of their products as quickly as possible. Even though they suspended home delivery services, you could still come to the store and buy anything for 80% off. I know a lot of people who got an ounce of weed last week for under $50. I love getting marijuana that cheap, but I hate the reasons for why that’s possible in the first place.

 

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