Market & distress
Why are Michigan cannabis businesses closing?
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The answer
Compressed retail and wholesale pricing — average flower at $58.18/oz, down from triple-digit prices — combined with the new 24% wholesale tax effective January 2026 have squeezed margins hard enough that active licenses fell by a net 85 in 2025, the first annual decline since 2019, concentrated among thinly capitalized operators.
TerrAscend as a case study
TerrAscend Corp. defaulted on a $210 million loan and entered Michigan receivership on 6 May 2026, covering 20 retail dispensaries under the Gage, Cookies, Lemonnade and Pinnacle Emporium banners plus four cultivation and processing facilities — illustrating how even scaled multi-state operators are exposed to Michigan's pricing and tax compression.
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Related pages on this site
- How to buy a distressed dispensary
- Wholesale tax effect
- Michigan distressed market
- Receivership & distressed service
More market & distress answers
- Is the Michigan cannabis market oversaturated?
- What is the average price of cannabis in Michigan right now?
- How does Michigan's 24% wholesale tax affect operators?
- How many dispensaries are there in Michigan?
- How do I buy a distressed dispensary in Michigan?
- How much marijuana tax revenue does my city get?
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