Cannabis Control Commission moves to simplify process for state’s many distressed license holders
More and more Massachusetts cannabis companies are landing in court-ordered receiverships after becoming unable to service their debts. It’s a complicated process that involves a difficult balance between state court authority and regulatory oversight from the Cannabis Control Commission.
Courts are allowed to appoint a company’s chosen receiver, but the CCC has to approve them to ensure they qualify to take over a license without also exceeding the state’s licensing cap, which limits how many licenses can be under the control of one person or entity.
At last week’s public meeting, Commissioner Kimberly Roy said that ongoing concerns about receiverships came up during a recent call among agency staffers.
“I think at that time there were 24 receiverships across different license types, and since then I think five more have been added,” Roy said. “So now we’re around 29 and sadly I think that list is going to be growing.”
Outside of receiverships, an increasing number of businesses surrendered their licenses in 2025, amid rock bottom prices and a larger economic downturn throughout the country.
Although the courts are responsible for appointing receivers, Roy explained that the commission has a list of pre-approved receivers. The CCC has to approve anyone who takes control of a cannabis license, so the pre-approved list can expedite that process.
“The list is not very long, and we also have statutory cap limits that we need to adhere to. Increasing that list provides a service to the courts,” Roy said. “It’s a service we could provide to say that we’ve done their background checks. We’ve looked into these folks and we consider them to be pre-certified as an appointee or receiver.”
Roy also noted that the role of receiver is not always to save a business. Often, it involves winding down operations or funding an adequate buyer.
Although the court ultimately has the authority to appoint a receiver, in the case of cannabis companies, state regulation requires that any change in control or ownership be approved by the Cannabis Control Commission.
“We’re basically saying these are the folks that have the gold star,” CCC Chair Shannon O’Brien said.
The preapproval fee is currently about $500, which could disincentivize potential receivers from going through the process, according to Director of Licensing Olivia Koval.
“I’ve had people that jump on phone calls with us asking, So, why do I have to do this? Why am I going to pay this fee that I’m going to have to pay for a background check?” she said.
Receivership is often the best option a distressed cannabis company has to repay its debt holders. While cannabis remains a Schedule I drug under federal classification, bankruptcy court is not a legal option. (While there is an executive order to reschedule, the change has not taken effect yet.)
As the Bay State’s market has matured, hundreds of companies have found themselves unable to pay their bills.
Most notably, Massachusetts-based multi-state operator 4Front filed for receivership in May 2025. In that company’s case, its board made the decision to sell its assets to cover unpaid debts. The chair of the board explained at the time that the arrangement was announced …
“While we believe 4Front’s cultivation and manufacturing operations are standouts and its retail stores have found exciting new ways to engage consumers, the liabilities on the Company’s balance sheet coupled with a lack of available financing for operations have forced us to file for a voluntary receivership in order to pursue an orderly sale of the Company’s businesses.”
