LANSING, Mich. (WILX) – Ascend Wellness Holdings is permanently closing its cannabis growing facility in Lansing and laying off 95 employees by late June.
The cannabis company operates in 7 states throughout the Midwest and Northeast, with a growing facility in Lansing and a dispensary in East Lansing.
The company has not responded to requests for comment about the reason for the closure of its growing facility. Employees outside the facility pointed to a need for renovations after a recent fire, along with broader industry struggles.
State and city officials say the closure is a sign of the growing pains in the Michigan marijuana industry as companies try to figure out how to stay profitable.
“It’s not the industry it was even just a couple years ago, where things were growing and booming,” said state Rep. Joe Aragona, R-Macomb County.
The Lansing city clerk’s office processes all the business licenses for the city.
“There was a thought at the beginning that this was just going to make money hand over fist, and like every other business, there are a lot of costs, there are a lot of competitors in it so, it’s not quite as lucrative,” Lansing City Clerk Chris Swope said.
Swope said he’s seen a shift in cannabis-related applications.
“We have seen some retraction in the market. We’ve seen the number of grows has decreased since we initially put the ordinance into place,” Swope said.
Aragona serves as chair of the Regulatory Reform Committee. He says as the industry becomes saturated, lawmakers need to create stability for cannabis companies whose margins may fall short.
“We need to step up, help out that industry, that way if there is a fire or something does happen, it’s not going to be completely devastating, you know, there’s the ability to rebuild,” Aragona said.
An employee outside the facility told News 10 on Wednesday that workers received layoff letters, but they went back to work and will continue to do so until the layoff takes effect on June 26.
Lansing Mayor Andy Schor issued a statement on the closure:
“We are seeing the cannabis market fluctuate across the state and it is affecting the lives of the employees of many of the facilities. It’s always disappointing when a local employer is forced to lay-off a large group of workers, especially right now as costs continue to rise across the country. I hope these employees are able to find work quickly, and encourage each of them to make use of the Capital Area Michigan Works! and other available resources found via the 211 telephone line. We want to see these people back in the work force as soon as possible!”
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