Canada’s Canopy Growth Corp said on Tuesday it would divest its retail business across Canada, as the pot producer doubles down on its efforts to turn profitable.
The business includes stores operating under the Tweed and Tokyo Smoke retail banners, and follows recent efforts to become profitable by reining in costs through layoffs, exits from some international markets and store closures.
Licensee partner OEG Retail Cannabis will buy 23 Tokyo Smoke and Tweed stores across Manitoba, Saskatchewan, and Newfoundland and Labrador, while cannabis retailer 420 Investments Ltd will purchase five corporate stores in Alberta, the company said.
The master license deal between Canopy and Alimentation Couche-Tard Inc related to the use of the Tweed brand for brick-and-mortar retail stores operating in Ontario has also been terminated.
Canopy said all in-store staff working in the locations being acquired will be employed by the buyers pending completion of the transactions.
Earlier this year, the company extended its time frame to achieve profitability as fewer-than-expected retail stores and cheaper black market rates crimp sales at legal recreational companies. (Reporting by Arunima Kumar in Bengaluru; Editing by Shailesh Kuber and Sriraj Kalluvila)