Cannabis retailer Tokyo Smoke to close 29 stores amid creditor protection proceedings
Cannabis retailer Tokyo Smoke says it will close 29 stores as it seeks creditor protection. (Pexels)
TORONTO -
Cannabis retailer Tokyo Smoke says it will be shuttering 29 of its stores as it seeks creditor protection.
The closures are part of a restructuring the brand is carrying out under the Companies' Creditors Arrangement Act.
Tokyo Smoke says the moves are meant to better align its operations with the current cannabis market and regulatory conditions, which the company says have changed "significantly."
Some 167 locations across Ontario, Manitoba, Saskatchewan and Newfoundland and Labrador will remain open amid the restructuring.
OEG Retail Cannabis, a company run by the owner of the Edmonton Oilers hockey team, bought the Tokyo Smoke brand from pot giant Canopy Growth Corp. in September 2022.
Since that deal was signed, the cannabis market has struggled as the number of retailers has soared and the price of pot has dropped.
This report by The Canadian Press was first published Aug. 28, 2024.
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