Cannabis operator Ayr Wellness restructures to cut debt by 50%, focus on growth
- barneyelias0
- 2 hours ago
- 1 min read
October 13 2025
Debt Slashed, Ownership Shifts
Ayr Wellness, a multistate cannabis operator, is restructuring.It will cut debt by over 50%.Senior note holders, led by Millstreet Capital Management, will take ownership.They hold $387 million in credit to buy Ayr’s assets.
New Investment
Debt holders will inject $50 million.The funds will boost growth in markets like Virginia.Plans include new retail, cultivation, and manufacturing facilities.
Streamlined Operations
Ayr is focusing on key markets.It has sold assets in:
Massachusetts: cultivation, medical dispensary.
Pennsylvania: three stores, one cultivation facility.
Nevada: cultivation, processing facility.
New Jersey: cultivation facility.
Connecticut: one retail location.Illinois retail sales await regulatory approval.
Auction Planned
On November 10, debt holders will bid on assets.Targeted markets include Florida, Ohio, New Jersey, Pennsylvania, Nevada, and Massachusetts.Other bidders may emerge, said interim CEO Scott Davido.
Industry Challenges
The cannabis market is tough.Complex regulations and high costs strain operators.Overinvestment has led to a shakeout.Davido compares it to the early 1900s cereal industry consolidation.
Market Insights
Analyst Avis Bulbulyan sees a trend.Cannabis licenses are tools, not the business itself.New owners must shift to a consumer packaged goods model.Distressed assets attract cash-rich buyers, he says.
Future Outlook
Restructuring should finish by December.State approvals for asset transfers are ongoing.With reduced debt and new owners, Ayr aims to thrive.Davido is confident in a leaner, stronger company.
Originally published by [source not provided].
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