Skymint, the embattled marijuana operator being acquired out of receivership, is shuttering its growing and processing plant near Lansing.
The company plans to close the 56,000-square-foot Harvest Park facility at 10070 Harvest Park in Dimondale outside of Lansing and lay off roughly 180 employees by March 1, the company said last week in an internal memo to employees that was obtained by Crain’s Detroit Business.
“Unfortunately, the changes that occurred in the cannabis industry over the past few years no longer allow us to compete cost effectively while maintaining our growing processing operations at the Harvest Park facility,” Jeff Donahue, Skymint’s executive vice president and general counsel, wrote in the memo. “The decision was necessary to remain competitive in the market and ensure long-term viability of Skymint.”
Skymint continues to operate 22 retail locations across the state, according to its website.
Only a few years ago, Skymint was among Michigan’s largest producers and sellers of marijuana in the state before a collapse in marijuana prices and alleged bad management sank its financial outlook.
Representatives from Skymint nor its new owners Canadian leaders Tropics LP responded to Crain’s inquiries on the matter.
The deal to acquire the company out of bankruptcy was expected to close early next year. It’s unclear whether the closure is a directive from Tropics.
The company is expected to begin layoffs at the Harvest Park plant on Feb. 12, according to the memo.
This story appeared in Crain’s Detroit Business.