By Higher Love Closes Five Stores
Higher Love Cannabis Co. announced it will suspend operations at five of its nine Michigan dispensaries.
This move affects retail operations in the Upper Peninsula. The affected towns include Crystal Falls, Escanaba, Houghton, Munising, and Ontonagon. The decision marks a significant reduction in the company’s physical footprint.
The company cited the state’s 24 percent wholesale tax on cannabis products as the primary driver. Higher Love described this levy as “another substantial cost in a market already subject to a 10 percent retail excise tax and 6 percent sales tax” in a press release. The firm noted that these taxes apply at different stages of the supply chain.
However, their collective impact has created an increasingly unsustainable operating environment. This situation is particularly difficult for compliant businesses serving smaller and rural communities.
Remaining Locations Stay Open
Higher Love stated that its retail businesses in Ironwood, Marquette, Menominee, and Norway would remain open. These four locations will continue to serve customers despite the broader financial pressures. The company did not indicate whether it would restart business at the closed Upper Peninsula dispensaries.
This uncertainty leaves the future of those specific sites in question. The remaining stores will operate under the current regulatory framework.
The closure comes amid broader pressure across Michigan’s cannabis industry. The company noted that oversupply and price compression have already forced numerous businesses to consolidate. Many operators have suspended operations or eliminated jobs in response to declining revenue.
The added tax burden has further strained the supply chain. These factors make it increasingly difficult for responsible operators to remain viable in the current market.
Legislative Efforts Continue
Higher Love did not indicate whether it would restart business at the Upper Peninsula dispensaries if the bill becomes law.
The company’s decision to close the stores is immediate and final for now. The outcome of the legislative process remains a key variable for the industry.
The company emphasized that the decision was driven by economic sustainability. The combination of wholesale, retail, and sales taxes creates a heavy burden. This burden is felt most acutely by businesses in rural areas.
The closure of five stores represents a significant shift in the company’s strategy. The industry continues to navigate these complex tax structures while facing market challenges.
