The Cannabist Company plans to lay off 86 workers at its Vineland facility as it restructures through bankruptcy, marking another setback for New Jersey’s once-booming legal cannabis industry.
Vineland, NJ – Just a few years after New Jersey’s recreational cannabis market was promoted as a major driver of jobs, tax revenue and economic growth, another major cannabis operator is effectively exiting the state.
The Cannabist Company Holdings Inc., formerly known as Columbia Care, has notified New Jersey officials that it will lay off 86 employees at its Vineland cultivation facility by October as the multi-state cannabis company restructures through bankruptcy and sells off assets across the country. The company has also signed a memorandum of understanding to sell its New Jersey operations as part of its broader restructuring.
Phil Murphy touted the weed industry
Former New Jersey Governor Phil Murphy frequently touted and promoted the state’s legal cannabis market, framing it as a major win for social justice, economic growth, and equity.
Murphy signed adult-use cannabis reform legislation into law in February 2021, frequently celebrating the opening of the state’s recreational dispensaries as a way to undo the harms of the war on drugs.
He actively visited diversely-owned businesses in the sector, such as a tour of the Black-owned Prolific Growhouse in Mount Holly, where he highlighted state data showing high percentages of licenses going to minority and diversely-owned operators. During that visit, he posed with Prolific Growhouse promotional material for “Murphy’s Sourz”—a cannabis strain named in his honor.
He spotlighted administrative efforts to bolster the framework, including signing bills that provided state tax relief to licensed cannabis businesses by decoupling from federal tax restrictions.
Now, the honeymoon period for the industry appears to be over.
Bankruptcy marks another blow to New Jersey cannabis
The Cannabist Company filed restructuring proceedings in March under Canada’s Companies’ Creditors Arrangement Act and is seeking recognition of those proceedings through Chapter 15 bankruptcy in the United States.
Company officials said the move followed months of evaluating strategic alternatives after facing “persistent operational and financial challenges facing both the company and the broader industry.”
“Despite the Company’s significant efforts to improve its performance, it became clear during the strategic review that the Strategic Transactions, and the CCAA Proceedings necessary to implement such transactions, are the best option available for The Cannabist Company and its stakeholders,” the company said in announcing the restructuring.
As part of that process, the company has already sold its Virginia operations for $130 million, agreed to sell its Ohio business for $47 million and its Delaware assets for $16.5 million. It is also working to finalize the sale of operations in New Jersey, Illinois, Colorado, Massachusetts, Maryland and West Virginia.
Industry struggles extend beyond large operators
The Cannabist Company’s retrenchment follows another high-profile cannabis business failure in New Jersey.
The Medicine Woman, the Jersey City dispensary co-owned by rapper Ice-T, closed in early January after operating for less than a year. The dispensary had celebrated its grand opening on April 19, 2025, on Tonnelle Avenue, bringing a well-known California cannabis brand to New Jersey.
According to court filings, the property’s owner sued the business in January, alleging breach of contract and claiming rent had gone unpaid beginning in December. The lawsuit also alleged more than $63,000 in unpaid bills and cited a $51,392 mechanic’s lien tied to the property.
The closure highlighted the financial pressures facing cannabis retailers, including intense competition, high operating costs and a rapidly expanding marketplace where many operators have struggled to become profitable.
A changing outlook for the state’s cannabis market
When New Jersey legalized recreational cannabis, state leaders and industry advocates projected the market would create thousands of jobs, generate hundreds of millions in tax revenue and attract significant private investment.
Instead, many operators have faced falling wholesale prices, rising operating expenses, expensive real estate, regulatory costs and an increasingly crowded retail landscape.
Takeover and consolidation by “Big Weed”
In July, Vireo Growth Inc. announced plans to acquire cannabis assets from The Cannabist Company in five states, including New Jersey, in a transaction valued at up to $35 million, signaling continued consolidation across the industry rather than expansion.
While new dispensaries continue to open across the state, the closures and restructurings of established operators highlight the growing challenges facing New Jersey’s legal cannabis market as it matures.
