While Herbl has yet to confirm the news, it seems the big California distributor has turned out the lights. There had been rumblings for days that the company was in trouble.
Vendors were complaining about not getting paid as strapped dispensaries were allegedly stiffing Herbl after taking inventory.
Over the past several months, Herbl has filed collections claims in the Los Angeles County Superior Court against operators.
The whole thing appears to have crashed down on Friday, though Green Market Report has been unable to confirm that the company has been appointed a receiver.
The company’s website was still active as of Tuesday.
Herbl did not immediately respond to a request for comment on rumors of a bank takeover. Meanwhile, several former employees took to LinkedIn to express the loss of their jobs.
“It has been an absolute pleasure and honor having the opportunity to work with you over the past 2 years. As I continuously wipe the tears from my eyes, struggling to see this screen and keyboard, I can simply say Thank You,” wrote Mike Beaver, Herbl’s director of customer care. “Thank You for the opportunity to be a part of the best fucking team in cannabis.”
Roy McDonald, CPG sales leader at Herbl also chimed in: “As the Sales team for HERBL end their journey, I want to take a moment to thank every one of you. I have learned so much from all of you and made a lot of lasting friends along the way.”
Melissa Burgstahler, cannabis sales + key account management, wrote, “I want to take a moment to express my appreciation to my HERBL family. To my fellow sales teammates who have handled every task and curveball with grace and tenacity, to the customer care team who went above and beyond to ensure our team and our customers had everything; and pretty much anything they needed, and to the incredible drivers who have ensured our products were delivered safely and on time out on the road. It’s the end of this adventure, but not the end of this team’s journey and positive impact in this space. I’m forever grateful for the opportunity to work with you all and will always have your back. You know where to find me.”
Other industry players were quick to point out that the problems Herbl faced went far beyond the walls of the California distributor.
“Herbl was a central and large distributor to the industry. Not a peripheral player like Flow Kana or MedMen,” Scott Jennings, the CEO & founder of Pantry Food Co. wrote a week ago on LinkedIn. “While there is a LOT of blame and accountability to go around I can’t help but look to the policy makers and regulators as the ones who hold the most blood on their hands. IMO California State should be held accountable for the mess they created when they decided like a fool to not draft and implement safer and more common sense policies around ensuring financial health and payments of the industry.”
Ave Miller, co-founder of Uncle Arnies, noted that he was shifting his company to Kiva Brands distribution but acknowledged his appreciation for Herbl.
Tilt Holdings (OTC: TLLTF) has an investment in Herbl, but also did not respond to a request for comment.