Another cannabis retail store group that also operates bars has filed for creditor protection. Last month, the Donnelly Group filed for creditor protection citing the devastating impact of the global pandemic on the hospitality industry followed by its challenging economic effects. It owed a reported $20+ million to BMO, landlords, and the government.
The company, now branded as Freehouse Collective, employs 800+ staff and operates restaurants, bars, nightclubs, and barbershops in Vancouver and Toronto. The Donnelly Group also owns Bomber Brewing and Lightbox, which operates various cannabis stores under the Dutch Love name.
During this period, the company aims to work cooperatively with its lender to revise the terms of existing loans, restructure the debt that was required to survive the pandemic, and to emerge as a more robust organization. The Donnelly Group expects to continue operating all of its locations without interruptions during this period but has sold several cannabis stores.
Dutch Love Locations Sold
Three Dutch Love cannabis locations in Vancouver were named in insolvency documents in March. The sale of the Kitsilano, Robson, and Marpole Dutch Love locations to SNDL Inc. was approved for an unspecified sum.
SNDL is Canada’s largest private sector cannabis retailer, operating close to 200 locations under its four retail banners: Value Buds, Spiritleaf, Superette, and Firesale Cannabis. In a May 15 update to investors the company confirmed it purchased four Dutch Love locations. The transaction is expected to close by the end of June, with the fourth location being in Ontario.
Photo Credit: Dutch Love