A chain of seven marijuana retail chain stores called Buddy Boy are shuttering their stores in Denver.
The company plans to close all of its dispensaries because of a sharp decline in sales volume.
Buddy Boy suffered a loss in revenue under a new Colorado state law that drastically reduced purchase limits for medical marijuana sales.
This totaled about 90% of the retailer’s revenue, according to the Denver alt-weekly Westword.
Changes to regulations reduced the amount of MMJ concentrate that patients could buy from 40 grams to 8 grams.
Buddy Boy owner John Fritzel also owns Lightshade, a chain of 11 stores as well as a cultivation arm. He told Westword he plans to keep those open.
Medical marijuana sales in Colorado are down by 43% in the first four months of 2022 compared to the same span in 2021, according to Westword.
According to the state’s Department of Revenue, wholesale prices and overall sales volume have gone down and overall sales volume has declined for the 11th month in a row.
The Colorado Marijuana Enforcement Division has noted that the price of wholesale marijuana flower is down by 46% since January 2021.
Buddy Boy, founded in 2014, operated seven dispensaries in the city.
