Cannabis retailer MedMen Enterprises appointed Edward Record as its new chief executive, continuing a revolving door of C-level executives moving in and out of the company, which was founded in 2010 and went public in 2018.
Record took over for former CEO Michael Serruya, who joined MedMen’s board of directors in August last year via a $100 million investment in the company from his firm, Serruya Private Equity Inc.
“We are pleased to announce Ed as our CEO,” Serruya, MedMen’s chairman of the board, said in a statement. “Ed has the operational discipline and restructuring expertise that MedMen requires at this time, as well as a deep understanding of MedMen’s business model and strategy, inclusive of critical repositioning of the balance sheet and real estate portfolio.”
Record joined MedMen’s board of directors last year and according to the Culver City-based company brings deep retail and restructuring experience through his overseeing of financial and operational performance for several national retailers.
Previously, Record served as the chief financial officer for Hudson’s Bay Company, which included Saks Fifth Avenue in its U.S. holdings. Record was also a chief financial officer for JCPenney prior to joining Hudson’s Bay Company.
MedMen also announced it had received notification from Roz Lipsey, chief operating officer, of her decision to resign, effective May 20, 2022.
“We appreciate Roz’s contributions to the organization over the years and wish her well in her future endeavors,” Serruya said.
The company has had a difficult time operating in the cannabis industry in the last five years, dealing with a bevy of court battles, a decreasing stock price and multiple changes to its executive roster.
For example, it is currently in a legal battle with Ascend Wellness, which had an agreement to acquire MedMen’s New York-licensed operations for more than $60 million.
As part of a restructuring plan, MedMen is attempting to shed assets that are not core to its market strategy.
One such action being taken is its plans to sell its Florida-based assets for $83 million to Green Sentry Holdings LLC.
“As MedMen continues to transform its business model and position itself for future growth, our go-forward strategy is going to include an asset-light model that enables us to leverage the power and strength of the MedMen brand,” Serruya said in a statement.
The company reported in its first fiscal quarter of 2022, ending Sept. 25, 2021, that its revenue from continuing operations was $39.8 million, an increase of 13.4% from the same quarter the previous year.
Shares of MedMen closed down nearly 5 percent on May 4, bringing its share price to 10 cents.