Detroit Dispensary Drama Fueled By Unresponsive Insurance Providers: Viola’s Operations Indefinitely Suspended
In a decisive move that underscores the volatile nature of the cannabis industry, Al Harrington, former NBA player and CEO of Viola, announced the indefinite suspension of operations at the company’s sole dispensary located in Detroit.
This announcement comes approximately four years after the medical marijuana retail store opened its doors at 4473 W. Jefferson Ave., near Detroit’s riverfront, a location that Harrington had placed a significant bet on for his national cannabis venture.
The reasons leading to this suspension are manifold, yet they mirror challenges pervasive throughout the cannabis sector. In an interview with Detroit Free Press, Harrington said that plummeting profit margins, a direct result of the significant drop in cannabis product prices over recent years, combined with declining medical marijuana sales, have placed substantial strain on operations.
This strain is felt more acutely by cannabis companies that, like Viola, lack licenses to sell recreational marijuana, further exacerbating their struggles.
The most substantial setback for Viola, according to Harrington, stems from a dispute with Obsidian Specialty Insurance Co., the company’s insurance provider. Viola’s claims, including those related to damages from an ice storm in February that knocked out power and resulted in the loss of many marijuana plants, have been refused …