California’s largest cannabis delivery company, Eaze, is set to close its doors by the end of the year after its parent company was shuttered this summer.
Eaze quickly became the go-to delivery service for adult-use cannabis in the world’s largest cannabis market following California’s legalization of cannabis in 2018.
The on-demand delivery service, however, has recently endured a prolonged period of financial hardship amid an increasingly competitive market in the state.
Despite Eaze’s initial success, the company was hit hard by legal and financial issues, including the conviction of former CEO James Patterson for fraud. Additionally, investor lawsuits and high executive turnover have plagued the company in recent years, contributing to its downfall.
According to a LinkedIn post from CEO Cory Azzalino, ‘ongoing challenges’ will see the company shut its doors by December 31, 2024, with around 500 employees expected to lose their jobs.
It follows the collapse of Stachs LLC, Eaze’s owner, in August, before being bought out by tech investment mogul James Henry Clark for $54m.
While the new ownership is reportedly considering the future of Eaze, with an official update expected in mid-November, the fate of the once-dominant company remains unclear.
Eaze’s collapse marks the latest in a string of closures in California, following the downfall of MedMen and Herbl earlier this year.
These closures or downsizings reflect the increasing financial struggles plaguing California’s cannabis market, with reports suggesting some $700m is owed by cannabis businesses in unpaid taxes.
