Cannabis Businesses, Once in Trouble, Find No Good Way to Escape

MedMen Enterprises Inc. thought it had found a niche in the exploding retail market for legalized marijuana. It invested heavily in brick-and-mortar space in high-income areas like Beverly Hills and New York where it believed upscale customers would want to shop.

The company soon learned that even well-heeled cannabis consumers would rather drive a few miles to get a lower price, and that controlling costs is integral to success.

Ordinarily, when a business finds itself in dire straits because of that kind of miscalculation, it can file for Chapter 11 to get breathing room from creditors while restructuring its debts. ...