(Reuters) – Canada canopy growth (NASDAQ:) Corp. said Tuesday that it will divest its retail business across Canada, as the Destiny producer redoubles its efforts to turn a profit.
The business includes stores operating under the Tweed and Tokyo Smoke retail banners, and follows recent efforts to make profits by reining in costs through layoffs, exiting some international markets and closing stores.
The company said licensed partner OEG Retail Cannabis will buy 23 Tokyo Smoke and Tweed stores in Manitoba, Saskatchewan and Newfoundland and Labrador, while retailer 420 Investments Ltd will buy five corporate stores in Alberta.
A major licensing deal between Canopy and Alimentation Couche-Tard Inc relating to use of the Tweed brand for brick-and-mortar retail stores operating in Ontario has also been terminated.
Canopy said that all store employees who work at the locations being acquired will be employed by buyers pending the completion of transactions.
Earlier this year, the company extended its time frame for profitability as lower-than-expected retail stores and cheaper black market rates slashed sales at legal entertainment businesses.
