Calgary cannabis company SNDL to lay off 100

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This article was published 19/07/2024 (442 days ago), so information in it may no longer be current.

Calgary-based cannabis and liquor retailer SNDL Inc. is laying off more than 100 people in restructuring the company says will produce $20 million in cost savings.

Winnipeg-based Delta 9 Cannabis owes SNDL about $40 million via debt instruments. SNDL’s recent issuance of demand payment notices to Delta 9 were the impetus for the Manitoba firm to file for creditor protection with the courts this week.

As part of that process, Delta 9 has entered into a proposal with another cannabis retailer, Toronto-based FIKA Company, for FIKA to acquire Delta 9’s 41 retail stores in Western Canada.

Delta 9 stated in its court filings it believed SNDL’s “aggressive” actions were a prelude to an attempt by SNDL to seize Delta 9’s assets.

SNDL owns 188 cannabis retail locations under various banners, including Spiritleaf, Value Buds, Superette and Firesale. It is the largest cannabis retailer in the country.

FIKA, which owns more than 100 cannabis stores across the country (including some in partnership with Delta 9) is one of SNDL’s closest rivals.

Delta 9 will present its plan of arrangement in court next week, as part of its Companies’ Creditors Arrangement Act creditor protection process.

martin.cash@freepress.mb.ca