MedMen Enterprises Inc. has thrown in the towel, citing financial conditions and an inability to pay its debts, said Amit Pandey, the cannabis company's former chief financial officer late Friday.

Once hailed as the first cannabis unicorn and the “Apple store of weed,” MedMen spiraled over the past several years as troubling financial reports began to leak. These were followed by retail shop closures, layoffs, lawsuits and recriminations among executives.

"The difficult decision to shut down operations and commence the Bankruptcy Proceedings and Receivership Proceedings was made after careful consideration of the current financial condition of the Company and its subsidiaries, their inability to pay their liabilities as they become due and the anticipated enforcement actions of secured creditors," MedMen announced in a Friday press release.

"After careful consideration of these factors and in the absence of other available alternatives, the board of directors of the Company determined that it was in the best interests of the Company to proceed with the commencement of the Bankruptcy Proceedings and Receivership Proceedings."

$3 Billion Valuation

MedMen opened one of California's first retail cannabis stores in 2018 in West Hollywood after recreational cannabis laws went into effect. That same year, its stock was given a $3 billion valuation.

Despite MedMen's early success, it faced numerous challenges in the form of legal battles, failed acquisitions, high losses and stiff competition from both the legal and illicit cannabis markets.

Pandey resigned effective Feb. 13, along with each of the company's directors who resigned immediately prior to the commencement of the bankruptcy proceedings.

More information regarding the bankruptcy proceedings can be obtained from the bankruptcy trustee's website.

Photo: Courtesy of MedMen Enterprises Inc.