Over ten million dollars wasted on Ontario cannabis stores that were never opened

CalyxCrusher

Well-Known Member
https://www.thepostmillennial.com/over-ten-million-dollars-wasted-on-ontario-cannabis-stores-that-were-never-opened/


According to financial statements released by the Ontario Cannabis Retail Corporation (OCRC), at least $10.2 million was spent on cannabis stores that were never opened.


Of this figure, $8.9 million was spent on equipment and renovation write-offs, while $1.2 million was spent on leases and subsequent lease terminations — these were likely connected to a failed store in Guelph which never materialized.

They are basically writing off all the renovation expenses that they had incurred, and the equipment that they’d purchased for the stores,” says Brock University business professor Michael Armstrong.

“That’s $2 million per location, but there may be some other things in there in terms of stuff that they had in the headquarters, or stuff they had in the warehouse that was going to support the retail stores and now they don’t need that.”

According to an email from OCS spokesperson Daffyd Roderick to Global News, most of the $8.9 million came in the form of transitions between mandates for store fixtures to bolster a larger network. He says the OCS is now trying to recover the value of these assets.


Armstrong also questioned the types of things being written off, such as computers which are still completely functional and could be resold on the market quite easily. He believes the fast-paced nature of opening such a large distributor may be the cause of the OCS’s rapidly accumulating write off lists and quick abandonment of failed projects.

“That could represent maybe a hasty decision,” Armstrong says. “The OCS is a pretty new organization. It’s a little over a year old, so maybe it’s lack of experience, but it’s also not necessarily a priority.

“They’re busy trying to get their online sales working properly, they’re busy trying to get ready for the new government’s private-sector retailing, so ‘Let’s not waste time, let’s get rid of this stuff quickly rather than haggle over some pennies.”
 

Hashishh

Well-Known Member
Wonder how long they'll hold on to this sinking ship.

If their true goal were to keep cannabis out of the hands of children and squish the black market like they said wouldn't they just outright decriminalize?

Nothing but problems since legalization. I'll keep on as I always have.
 

gb123

Well-Known Member
business 101

THEY LIKE IT LIKE THIS :idea: IT MAKES THE REVENUE ..............................one way or another.


..They lose out selling and gain busting folks lol
 

cannadan

Well-Known Member
We have already seen the Lp's bottom line....when organigram went to their investors and were bragging about 1.15 per gram all in...ready to sell.
so what is really holding the prices in this market up.????
That would be the LP's themselves...and their greed
because 1.15/gram plus a reasonable amount of profit...like most standard business has...would equal...goodbye black market.....
just saying
 

GreenHighlander

Well-Known Member
On global news they had a financial analyst crying about how Lp's aren't cutting costs on their grows and it's hard for them to compete with the cheaper black market option
LOL That must be some degree that financial guru has .

Again lets be real about what is happening.
We have huge companies that have unlimited resources to grow and market their product. Not only that but they also have the biggest gang in the country backing them and trying to beat their competition into submission.
All that and they STILL can't make money? LMFAO
Instead of calling myself an " expert " and speaking in public , I would be ashamed to ever show my face.
All these experts can't do what teenagers have been successfully doing for generations now. HILARIOUS :hump::eyesmoke:

Cheers :)
 
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