CWNevada filed for Chapter 11 bankruptcy Tuesday night, becoming the state’s first large-scale cannabis company to seek protection from creditors.
CWNevada, one of Nevada’s largest cannabis companies, is facing 10 lawsuits from investors, edible makers, partner, a landlord, and workers over failure to pay or pay on-time.
Separately, the company was recently ordered to pay its former consultant $4.9 million and had two of its dispensaries in Clark County shut by The Nevada Department of Taxation for failure to pay taxes.
The bankruptcy filing came just before creditors were to ask Nevada District Court Judge Rob Bare Wednesday afternoon to impose a receiver over CWNevada. The bankruptcy filing stalls a decision on receivership.
CWNevada CEO Brian Padgett did not immediately return a request for comment.
This is a developing story. Check back for updates.
Contact Todd Prince at 702-383-0386 or [email protected] Follow @toddprincetv on Twitter.