MedMen Enterprises co-founders Adam Bierman and Andrew Modlin have suffered a swift and dramatic failure with their latest cannabis retail venture, Megabud, as the company collapsed amid lawsuits, unpaid bills, and internal disputes. Public records and court filings reveal a pattern of financial mismanagement and legal entanglements that forced the chain’s abrupt closure within months of its launch.
A Promising Start in a Struggling Market
Bierman and Modlin, known for their controversial leadership at MedMen, attempted a comeback with Megabud, a new retail brand that entered California’s turbulent cannabis market in early 2023. The venture launched amid worsening economic pressures in the industry, including falling wholesale prices, shrinking retail margins, and heightened regulatory scrutiny.
Despite its ambitious goals, Megabud quickly ran into trouble. The company struggled with inventory shortages, licensing hurdles, and a lack of consistent revenue. By mid-2023, financial instability became evident as vendors and service providers reported nonpayment for their goods and services.
Financial Struggles and Legal Challenges Mount
Lawsuits against Megabud paint a picture of mismanagement and financial distress. Among the most notable cases is a claim from a security firm alleging it was owed nearly $80,000 for services rendered at multiple Megabud locations. The firm’s owner, Robert Bell, ultimately ceased operations at the stores in September 2023 after repeated payment demands went unanswered.
Meanwhile, internal conflicts also surfaced. Bierman was reportedly locked out of Megabud’s Daly City location by his own business partner, Aaron Hertzberg, in what appears to be a bitter dispute over control of the venture. Hertzberg has remained silent on the matter, and court records suggest deeper disagreements behind the scenes.
Rapid Decline and Store Closures
By June 2024, Megabud’s retail locations in San Francisco, Daly City, and Antioch had lost their state licenses, signaling the end of the company’s operations. Records from the San Francisco Office of Cannabis confirm that the city’s Megabud store shut down permanently as soon as its license expired.
Industry insiders were taken aback by the speed of the collapse. Many questioned how Bierman and Modlin managed to secure funding for the venture in the first place, given their rocky history with MedMen. Some observers speculated that Megabud may have been a short-term cash grab rather than a serious long-term business effort.
A Troubled Legacy in the Cannabis Industry
The downfall of Megabud underscores the volatility of the legal cannabis market and the challenges facing even experienced operators. Bierman and Modlin, once seen as pioneers in cannabis retail, have now faced two major setbacks, raising doubts about their ability to sustain a successful business in the industry.
As California’s cannabis market continues to grapple with financial and regulatory pressures, the lessons from Megabud’s failure serve as a cautionary tale. Entrepreneurs and investors looking to enter the space will need strong financial oversight, strategic planning, and regulatory compliance to avoid similar fates.
For Bierman and Modlin, the collapse of Megabud leaves their future in the industry uncertain. Whether they attempt yet another comeback or step away from cannabis altogether remains to be seen.
Rita Ferreira
Rita is a seasoned writer with over five years of experience, having worked with globally renowned platforms, including Forbes and Miister CBD. Her deep knowledge of hemp-related businesses and passion for delivering accurate and concise information distinguish her in the industry. Rita's contributions empower individuals and companies to navigate the complexities of the cannabis world, and her work remains a valuable resource for those seeking a deeper understanding of its potential.
