The basics:

• 86 jobs eliminated at Cannabist cultivation sites in Vineland
• 3 NJ dispensaries sold to Vireo Growth
• Bankruptcy restructuring drives New Jersey exit
• Vireo expanding retail footprint through multistate acquisition

After filing for bankruptcy this past spring, The Cannabist Co. is winding down operations in New Jersey.

In a notice to the state Department of Labor and Workforce Development, the multistate operator said it is eliminating 86 positions at its two cultivation sites in Vineland. The layoffs are effective Oct. 11.

Cannabist is also selling off its three New Jersey dispensaries (Vineland, Deptford and Mays Landing) to competitor Vireo Growth, according to a July 20 press release.

The Minneapolis firm just unveiled plans to spend up to $35 million to buy former Cannabist properties in five states, including New Jersey. Vireo is also scooping up sites in Colorado, Illinois, Massachusetts and West Virginia, the announcement said.

According to Vireo, the transaction will be completed in stages throughout 2026 and 2027.

Vireo expands

With more than 200 dispensaries nationwide, Vireo has one of the largest cannabis retail networks in the U.S. The Cannabist deal is expected to add up to 25 dispensaries, one cultivation site and one production asset to its portfolio.

In a statement, Vireo CEO John Mazarkis said the move “meaningfully expands our operational footprint, strengthens our vertically integrated platform, and adds a highly experienced team along with operations in new markets.”

“This transaction reflects our disciplined and strategic approach to industry consolidation as we continue building one of the most capital efficient, vertically integrated cannabis platforms in the United States,” he said.

Cannabist CEO David Hart shared, “We are proud of the team and operations we have built across these markets, and we believe these transactions position those assets for continued growth and long-term success through Vireo’s platform.”

Spokespersons for Vireo and Cannabist did not immediately respond to a request for more details on the South Jersey acquisitions.

Within New Jersey, Cannabist’s operations generated roughly $43.5 million in revenue last year – almost 16% of the company’s total revenue, according to court filings. Cannabist said its other top markets in 2025 were:

• Colorado (28%)
• Ohio (18%)
• Maryland (12%)

‘Significant challenges’

After defaulting on debt payments and facing liquidity constraints, the Canadian-based company sought creditor protection in March. Cannabist commenced insolvency proceedings before the Ontario Superior Court of Justice. A day later, the company filed a related Chapter 15 petition in U.S. Bankruptcy Court for the District of Delaware.

In court filings, Cannabist reported net losses of $105.1 million for 2024. The figure totaled $124.2 million for the first nine months of 2025. It entered restructuring proceedings with $220 million in funded debt. The figure included $179 million in senior secured notes and $40.4 million in mortgage debt.

Cannabist has also disclosed roughly $51 million in disputed federal tax liabilities related to Section 280E of the Internal Revenue Code.

In court filings, Cannabist said an oversupply caused by illicit dealers and “an unexpected number of licensed competitors in certain jurisdictions” has caused “significant challenges” in recent years to the legal cannabis market.

Additionally, the company noted problems in accessing banking and capital markets and supply chain hiccups. It also highlighted “adverse tax consequences” because of the federal government’s position that cannabis remains a dangerous controlled substance.

“These industry challenges have acutely impacted the Company’s ability to operate its business profitably,” according to Cannabist.

It said “a range of options” was considered to keep the company going, including potential asset sales, mergers, or other strategic and financial transactions.

However, “in light of persistent operational and financial challenges facing both the company and the broader industry,” Cannabist said it chose to pursue bankruptcy as a way to secure the best value for a sale of assets as going concerns.

Cannabist is now in the process of selling off operations to satisfy creditors and exiting select markets.