Green Dragon files WARN notices in Colorado, Florida: CEO says business is done

DENVER (KDVR) — It looks as though Edgewater-based, multi-state marijuana producer and seller Green Dragon is leaving the state and closing down entirely.

It’s all part of a complex legal dispute between various business owners and stakeholders in the marijuana industry across the U.S.

In 2021, Green Dragon merged with Eaze Technologies, Inc., a marijuana delivery business that operates in California and Michigan. However, Eaze was purchased earlier this year by billionaire James Henry Clark, a founder of Netscape, through his company FoundersJT LLC.

Meanwhile, Cory Azzalino, the CEO of Eaze, announced it would fully cease operations by Dec. 31 . Azzalino said the company’s assets were foreclosed on by lenders in August, leading to the company winding down operations. He also cited the ongoing challenges in the California cannabis market as part of the company’s issues.

Azzalino also said employees will get more information by at least Nov. 15, with more clarity on timing.

On Oct. 16, DP Holdings Colorado LLC., doing business as Green Dragon, filed WARN notices in Florida and Colorado regarding upcoming layoffs. In Colorado, 59 employees will be impacted. The company said the layoffs will impact all positions, including cannabis harvesting and packaging. The layoffs are set to be final as of Dec. 31.

WARN notices provide written notification from an employer that at least 60 days after the notice is received, there will be mass layoffs or the plant is closing.

The company stated its reason for the layoffs in Colorado was closure. The marijuana producer’s Colorado locations are under union representation, so UFCW Local 7 was notified of the closure.

Green Dragon operates 17 locations in Colorado and 39 in Florida .

In Florida, the company said it would be terminating 113 positions because the “employer lost all of it’s assets in a public auction and is shutting down.” The company further stated that all employment at the site would be terminated.

The company’s closure comes as Colorado sees some of its lowest annual marijuana sales numbers in years, as the state marks 10 years of legal cannabis. Through August of this year, the state is reporting about $108.9 million in marijuana sales. Last year, the state recorded $132.45 million in sales through August.

FOX31 has reached out to UFCW Local 7 for comment on the impending job losses.

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