Trulieve to Exit Massachusetts Market; Will Close Third California Retail Facility

The largest cannabis retailer in the United States no longer plans to operate in Massachusetts and will continue to downsize its assets in California—two legacy markets that have been riddled with price compress during the past year.

Florida-based Trulieve, which has an industry-leading 187 dispensaries throughout the country, announced June 1 that the company plans to cease its vertical operations in Massachusetts, including its three retail facilities in Framingham, Northampton and Worcester by June 30, as well as its cultivation and processing facility in Holyoke by year’s end.

The Holyoke facility caught national news headlines last year after 27-year-old worker Lorna McMurrey collapsed at the plant. She later died and the incident was investigated by the Occupational Safety and Health Administration.

RELATED: Investigation Began Before Trulieve’s Holyoke Facility Worker Died

In addition, Trulieve will close its dispensary in Grover Beach, Calif. This follows the exit of select California retail assets last year in Palm Springs and Venice.

These closures are in line with what the company has called proactive steps since mid-2022 to “rationalize cash and margin dilutive assets,” and to streamline operations while reallocating resources toward attractive markets with long-term growth potential.

Most recently, Trulieve opened a pair of medical cannabis dispensaries in Georgia in late April, and the company plans to open its first medial cannabis dispensary near Columbus, Ohio, later this year. But the bulk of Trulieve’s footprint includes 125 dispensaries in Florida, where it has contributed $38.5 million toward backing a campaign for a 2024 adult-use ballot measure.

In its first-quarter financial results released last month, Trulieve reported $195 million in cash at the period’s end. Still, the company’s most recent optimization efforts come after exiting Nevada’s wholesale market and idling production capacity in certain states to match consumer demand.

“These difficult but necessary measures are part of ongoing efforts to bolster business resilience and our commitment to cash preservation as we continue to focus on our business strategy of going deep in our core markets and jettisoning non-contributive assets,” CEO Kim Rivers said in a press release. “We remain fully confident in our strategic position and the long term prospects for the industry.”

Trulieve, which relies on retail sales for roughly 95% of its revenue, made these decisions after California’s adult-use market took a 7% nosedive in statewide retail sales in 2022—and with revenue continuing to sink in the first quarter of 2023.

And in Massachusetts, statewide retail sales growth slowed to 7% in 2022 after 69% and 76% growth the previous two years, as many operators have struggled to make a profit amid greater supply and lower prices. As of April, the state’s average flower price at adult-use retail was $171.60 per ounce, a 57% decrease from early 2021, according to the Massachusetts Cannabis Control Commission.

RELATED: Inside the Cannabis Market in Massachusetts, Operators Find (Cautious) Optimism

Specifically for Trulieve, the company has 128 employees in Massachusetts who will be impacted by the market exit, MassLive.com reported.

While Trulieve stated in the press release that it expects to cease its Massachusetts operations by the end of 2023, a letter sent to a laid-off worker from the company’s Holyoke facility that was obtained by Cultivated reporter Jeremey Berke suggests that the facility will close July 31.

“We regret to inform you that your position will be eliminated and your employment with Trulieve terminated on July 31, 2023,” the letter states. It was signed by Nichelle Miller, Trulieve’s human resources director of people operations.

According to the letter, the Holyoke Trulieve employees will be inactive beginning July 1 but continue to receive their salaries and benefits through the end of the month. 

As Trulieve continues to evaluate the performance of its operations in various state markets, the company will continue to take additional steps as needed to optimize the business, according to the June 1 press release.

“The company is focused on cash preservation and cash generation while continuing to make targeted investments in retail expansion as well as advanced data and technology platforms to set the foundation for a future defined by integrated commerce,” the release states.