A prominent cannabis wholesaler in Michigan announced it will close its Adrian facility as part of a strategic plan to streamline operations and strengthen its financial position as the industry continues to struggle with low prices and fierce competition.
Tend.Harvest.Cultivate., which operates under Fluresh, LLC, will shift its focus to its Grand Rapids facility, which will serve as its primary hub for cultivation, production, and distribution.
The decision to close the Adrian facility comes amid challenges in the cannabis market, including significant price compression. The average price for an ounce of recreational flower dropped from more than $512 in January 2020 to $74 in October, an 86% decline, according to the Michigan Cannabis Regulatory Agency.
During the same period, an ounce of medical flower dropped from $267 to $ 92.60.
“We want to extend our heartfelt thanks to the Adrian community, our employees, our customers, and the City of Adrian for their incredible support and partnership,” CEO Brandon Kanitz said in a news release Monday. “We are deeply grateful to have been welcomed by such a vibrant community and to have had the opportunity to contribute to the local economy and the city’s growth.”
The company’s brands include Fluresh, Carbon, Mr. X, and Jasper, according to its website.
Since its establishment in Adrian, Tend.Harvest.Cultivate. has supported local causes, collaborated with small businesses, and contributed to the local economy. The company emphasized its pride in the relationships it built with community members, customers, and local partners.
The closure, however, was described as a necessary step to ensure long-term sustainability.
“While closing the Adrian facility was a difficult decision, it enables us to concentrate our efforts on our more profitable assets, allowing us to better serve our customers for years to come,” Kanitz said.
Employees impacted by the closure will receive resources and support during the transition, including 60 days of severance pay. The company is also working to relocate team members where possible.
The decision reflects broader market pressures within the cannabis industry, particularly declining prices and increased competition. By consolidating operations at its Grand Rapids facility, Tend.Harvest.Cultivate. aims to improve efficiency and performance while maintaining a foundation for future growth, the company said.
Despite the closure, the company expressed deep gratitude for the Adrian community’s support.
“We are sincerely thankful to have been part of Adrian's community and depart with gratitude for everyone who has been part of our journey,” the company stated.
