Cannabis company abruptly closes all stores amid lawsuits

Nina Zdinjak

Mon, May 18, 2026 at 4:33 PM EDT 5 min read

Strong demand for a product doesn’t guarantee business success, especially in the unique cannabis industry.

While general retail struggles with economic headwinds, rising labor and rent costs, and shifting consumer behavior, the marijuana landscape faces additional, distinct challenges.

The demand is there. The First Citizens February 2026 State of the Cannabis Industry report notes that although macro-level changes such as inflation and policy will shape markets moving forward, “consumer demand for both hemp and marijuana products remain[s] strong throughout the U.S.”

Yet, despite this demand, the U.S. cannabis industry recently recorded its first revenue decline after a decade of growth. According to the report, 2024 sales reached $30.1 billion, but 2025 revenues dipped to an estimated $28.6 to $29.6 billion.

Importantly, unit volumes remained stable. The culprit was deflationary pricing pressures, which drove down the average price per good. Consequently, one-third of operators saw 2025 revenue drops, triggering cost-cutting measures and layoffs.

On top of these widespread economic hurdles, cannabis operators must navigate constant regulatory shifts at both national and regional levels.

Illustrating these compounding pressures, one medical and recreational marijuana company has suddenly shut down all three of its locations.

Atlantic Medicinal Partners (AMP) abruptly closes all locations amid lawsuits 

Medical and recreational cannabis company Atlantic Medicinal Partners (AMP) has suddenly shut down all three of its locations, reported Hemp Gazette, citing Worcester Business Journal.

AMP closed three locations, including its Fitchburg dispensary and cultivation facility, amid two lawsuits seeking a combined $6.11 million in damages related to alleged unpaid debt and loan obligations.

Lawsuits against Atlantic Medicinal Partners: 

• The landlord lawsuit: The owner of the property where AMP grew and sold its products says the company owes $112,000 in unpaid rent and more than $64,800 in water and sewer bills to the City of Fitchburg. The landlord is suing for $3.54 million, claiming the company's bosses misrepresented the company’s financial stability. The judge ordered AMP to post a $300,000 bond specifically for its unpaid taxes and water bills in Fitchburg.

• The investor lawsuit: On May 6, 2026, Victoria Waters sued AMP in Middlesex Superior Court to enforce a $2.57 million arbitration award granted to her in April 2026. The dispute stems from a $1 million, five-year loan Waters gave AMP in 2019. The loan carried a 15% annual compounding interest rate and matured in March 2024. The lawsuit alleges that AMP defaulted by failing to repay both the principal and the accumulated interest.
  Source: Hemp Gazette