It didn’t seem like things could get much worse for MedMen, the onetime cannabis industry “unicorn” that rode a $3 billion valuation in 2018 all the way down to a present-day stock price of $0.
But the beleaguered company—which has seemingly collapsed in slow-motion—now owes nearly $2 million in back rent to billionaire New York real estate mogul Jack Cayre, who finally ran out of patience on Thursday, according to a default notice obtained by The Daily Beast.
“Please be advised that Tenant is in default of its obligations under the Lease and we hereby demand payment in the amount $1,870,499.52 by not later than February 21, 2024 for fixed rent and additional rent owed under the Lease in accordance with the attached statement,” it reads. “The undersigned may avail itself of all rights and remedies it has under law or equity, including, without limitation, terminating the Lease, and/or filing the applicable Confessed Judgments, copies of which are annexed hereto.”
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On Feb. 22, lawyers for Midtown Equities, which is owned by the Cayre family, filed the default notice in New York State Supreme Court, demanding the money.
The Los Angeles-based MedMen signed a 10-year lease in 2018 for the space in Manhattan’s Meatpacking District, court filings show. Rent was $179,166.67 a month in year one, hit $201,653.66 a month by year five, and would have been $233,771.86 a month by year 10, for an annual total of $2,805,262.35, according to a table included in one of the dozen or so exhibits filed by Cayre’s legal team.
The 4,000-square-foot Ninth Avenue dispensary was the company’s second New York City location, and opened when state law still restricted cannabis only to medical patients.
“Tenant shall use all commercially reasonable efforts to prevent objectionable or unusual odors or fumes to emanate from the Premises,” the original lease reads. “If Landlord receives any written complaint from any tenant or other occupant of the Building regarding such odors or fumes, Tenant shall take all actions necessary to prevent such odors or fumes from further emanating from the Premises.”
Attorney Jessica Eyland, who filed the default paperwork on behalf of Cayre, did not respond to a request for comment on Friday. Inquiries sent to MedMen’s legal department and communications team went unanswered.
MedMen has gone through five CEOs in three years, weathered fraud accusations by its former CFO, and continues to rack up a staggering mountain of debt.
