Hazel Park sees another cannabis business closure as market falters - Detroit Metro Times

Hazel Park's cannabis industry is reeling as another business closes its doors, adding to a growing list of shuttered dispensaries and facilities across the city. Clarity Dispensary, owned by Trucenta LLC, will cease operations on Christmas Eve, citing unsustainable profit margins and an increasingly challenging regulatory environment.

The move comes as Michigan's recreational marijuana industry struggles with oversupply, plummeting prices, and heavy administrative overhead. According to Trucenta CEO Zoran Bogdanovic, the state's Cannabis Regulatory Agency (CRA) has imposed "disruptive business practices" that have made it impossible for his company to continue operations.

Bogdanovic points to a combination of factors, including the 24% wholesale tax on marijuana, which he says will suffocate the industry, and the CRA's enforcement posture, which has created an environment of constant operational uncertainty. The agency's massive fines for small mistakes have also taken a toll on businesses.

Trucenta is not alone in its struggles. TerrAscend Corp., a multistate cannabis company, recently announced it would close all 20 of its dispensaries and four cultivation and processing sites in the state, laying off approximately 250 employees. The company's decision to exit Michigan comes after several other major players, including PharmaCann and Curaleaf, have also shut down their operations.

The closures have significant implications for Hazel Park, which has seen at least one other dispensary, four grow operations, six processors, two secure transporters, and a consumption lounge go out of business. Nine dispensaries still operate in the city, but the losses may spell trouble under legislation introduced by Democrats in the state Senate, which aims to limit municipalities to one dispensary for every 10,000 residents.

Trucenta's CEO remains committed to responsible operations and transparency, vowing to continue doing what is right for his company, employees, and customers. As the industry navigates this next chapter, it is clear that change is on the horizon.

Ugh I'm so worried about these poor dispensary owners and their employees , Hazel Park's cannabis industry has been struggling for ages and now another business closes its doors? It's like a domino effect . The 24% wholesale tax is insane, I mean who thought that was a good idea? And the CRA's enforcement posture is so harsh, it's like they're not even trying to help these businesses succeed .

I feel for Trucenta CEO Zoran Bogdanovic and his team, I know how hard it is to run a business when you're dealing with regulations that are just too much to handle . And now with TerrAscend Corp. closing down all its dispensaries in Michigan, it's like the whole state is getting wiped out of the cannabis industry .

I'm all for responsible operations and transparency, but can't we find a way to make this work? Maybe some kind of compromise or reform that doesn't hurt these small businesses so much?

This is so crazy, another business shutting down in Hazel Park just shows how tough the cannabis industry is in Michigan rn. I mean 24% wholesale tax? That's insane! You can't blame Trucenta for being frustrated with all these rules and regulations . And those massive fines for small mistakes? That's just discouraging for entrepreneurs who are trying to make a living . What's next, more closures? This whole situation has me worried about the future of this industry...

Man, this just reminds me of when I was in college and we used to sell CDs at a music store downtown . It was all about the vibe and the community, you know? Now look at cannabis, it's like a different world. All these big players shutting down, it's crazy. I mean, I get that the industry is tough, but 24% wholesale tax? That's insane! And them fines from the CRA? It's like they're suffocating the life outta 'em. I remember when I was in high school, we used to talk about this stuff as if it was gonna be a thing in our lifetime, and now it's just...done.

I mean, what happened to the days of, like, hippies and entrepreneurs creating their own little cannabis co-ops? That's the kinda vibe I miss. Now it's all big corporations and regulations . It's like we lost that grassroots energy. But hey, maybe this is just a sign that we need to rethink the whole system...

I'm not gonna lie, I think this is a blessing in disguise for Hazel Park ! It's time for some much-needed reform in the industry. All these closures are just an opportunity for the city to re-evaluate and streamline their regulations, making it easier for responsible businesses to thrive. And let's be real, 24% wholesale tax on marijuana is steep . Maybe this will encourage lawmakers to rethink that number? I'm also curious to see how the state Senate legislation plays out – could it lead to more efficient operations and better outcomes for residents? The industry may be struggling now, but with a little creativity and innovation, I think Hazel Park can come out even stronger .

I'm getting a bit worried about our local cannabis community ... another business closing up shop? It's like a domino effect. Those 24% wholesale taxes are just too much to handle. I get it, they need revenue, but you can't expect small-time businesses to make a profit with that kind of squeeze. And the regulatory environment is always so unpredictable ... it's like, one day you're good, the next day you're not. What's the point in even trying? It's all just too much for some of these newbies. I know companies are making mistakes left and right, but can't we find a way to make it more manageable? Not my job, I guess .

ugh i feel bad 4 trucenta lol they did everything by the book but still got hit w/ huge fines & taxes it's like, can't we just chill 4 a sec? and omg 24% tax margin? that's wild, like what's the point of even having a business if you're just gonna lose money i get why they said regulatory environment is disruptin' but c'mon state gov, help us out here

Ugh, another dispensary shutting down ? It's like, how many times can one city take before the whole thing just collapses? I get it, profit margins are low and regulations are tough, but come on... Can't they just find a way to make it work?

And what's with all these massive fines from the CRA? Like, yeah, we get it, rules need to be followed, but do they have to be so harsh? It feels like these businesses are being squeezed dry. And don't even get me started on the 24% wholesale tax... that's just ridiculous.

I'm not sure what the industry needs right now, but something has got to change. Maybe some new players come in and shake things up. Or maybe it's time for some actual reform? Either way, this is getting old fast

omg u guys I'm literally shook by all these cannabis businesses closing down in Hazel Park! like what's going on? first Clarity Dispensary and now TerrAscend Corp.? that's a lot of jobs lost, man... 250 employees gotta be so stressed about their futures and I get it, the state regulations can be super tough, but like, come on CRA, you gotta help these businesses thrive not suffocate them with taxes and fines nine dispensaries still open is a good thing tho, right? maybe this means Hazel Park will be able to limit its dispensaries to 1 per 10k residents without too much drama

just read about clarity dispensary closing its doors... cant believe how many dispensaries are shutting down in hazel park 24% wholesale tax must be killing them ive got a buddy who works in cannabis and hes saying its all about the regulatory environment, like, cant they just make it more clear what they want? anyway, its not good for the community... gotta keep an eye on that legislation tho... sounds like its gonna have some major implications

Man, I'm not surprised to see another dispensary close its doors in Hazel Park... It's like, they're trying their best but the state's rules are just too much . 24% wholesale tax is crazy and those fines from the CRA? Come on, that's just gonna push more businesses outta here .

I mean, I get it, the industry needs some regulation, but not at this level... It's like they're suffocating it or something . And what about all these laid-off employees? That's just harsh, man... They're already struggling and now they gotta lose their jobs too .

It's gonna be tough for Hazel Park to recover from this... I'm watching how the state Senate bill plays out, hoping it doesn't make things worse for the remaining dispensaries . We need some balance in this industry, you know? Profit and responsibility go hand-in-hand

I'm like totally bummed about Clarity Dispensary closing down . I've been a customer there for ages and it's always had such great vibes . Now I'm worried about what's gonna happen to all those jobs . The 24% wholesale tax is just crazy, you know? It's like, how can you even make a profit with that kind of hit . And the CRA's enforcement is super harsh too . I've heard some other dispensaries are struggling and it's not looking good for Michigan's cannabis industry .

I remember when this whole thing first started in Michigan, people were all excited about recreational weed . But now it feels like it's just been a huge headache . I'm hoping the state Senate bill tries to help things out . It'll be interesting to see what happens next and how the industry adapts .

I'm totally bummed about Clarity Dispensary closing down . It's like, I get that profits are tough to make in this industry, but I feel for all those employees who just lost their jobs . And yeah, Michigan's regulatory environment is super harsh right now, especially with the CRA being so strict about fines and whatnot . It's like, I get that they're trying to protect people, but come on, a 24% wholesale tax is just too much for most businesses to handle . And poor TerrAscend Corp., they have to shut down all their dispensaries in Michigan? That's huge . Maybe this is the wake-up call we need for the industry to rethink its strategy and make some changes, but it's still super sad to see so many businesses fail

man this michigan cannabis industry is literally dying like they cant even get a break from the state's crazy regulations... 24% wholesale tax is insane who thought that was a good idea? and those massive fines from the cra are just pushing businesses over the edge... it's not just trucenta tho, alot of other companies are struggling too i feel bad for all the employees who lost their jobs... it'll be interesting to see how this plays out with that new legislation trying to limit dispensaries in each city... hope some of these businesses can find a way to adapt and stay afloat

man i'm like totally concerned about these dispensaries in hazel park they're already struggling so much with high taxes and regulatory stuff it's crazy how trucenta just gave up on michigan anyway i think the state senate should rethink their legislation, maybe they can find a way to make it more fair for small businesses like this one plus it's not like the big corporations are going anywhere either

Ugh I'm dying over here another dispensary shuts down in Hazel Park?! Like, how many more can they take?! The 24% wholesale tax is just ridiculous and those fines from CRA are crippling businesses I mean I get it, regulations gotta be there but come on! You'd think the state would find a better balance between profits and operations . And now TerrAscend is shutting down all its spots too?! It's like Michigan is just sucking the life outta this industry What's gonna happen to all these employees?! They're like, totally losing their jobs now anyway...

I'm really worried about all these dispensaries closing down ... I mean, who's gonna make sure they're getting their licenses? And what's with this new law that's supposed to limit them to one per 10k residents? Isn't that just gonna push 'em outta the city altogether?

And what about all those people who lost their jobs at TerrAscend Corp.? That's just not cool, you know? I feel bad for them. I wonder if there are any resources available to help folks get back on their feet.

I guess it's no surprise that Trucenta is citing unsustainable profit margins and regulatory stuff as reasons for closing up shop... I mean, who can make a buck when they're stuck dealing with all these hoops? Maybe the state should rethink some of those rules or something.

just read about another dispensary in Hazel Park shutting down it's like, the cannabis industry in Michigan is struggling big time what's up with all these closures? it seems like the 24% wholesale tax is really taking its toll and the CRA's enforcement posture is super harsh i get that they wanna regulate the industry, but come on! can't we find a better balance? my friend owns a dispensary in a nearby city and is stressing about this too hope they figure out a way to make it work

Wow people need to chill out on the taxes man! 24% wholesale tax is just too much . And CRA's enforcement posture? Come on, can't they just chill? It's like they're suffocating these businesses before they even start . Michigan's got some serious work to do here, especially with their legislation . Maybe they need to rethink this whole one-dispensary-per-10k-residents thing

its like they say when u r in a business that's all about profit margins & stuff... sometimes u gotta fold if ur not gettin a decent return think trucenta should just sell to one of the bigger players, that way dey can break even & stay afloat