Troubled cannabis delivery company Eaze is winding down operations, according to CEO Cory Azzalino in a LinkedIn post. "Stache LLC will be winding down operations, with the full closure expected to take place on or around December 31, 2024."
Azzalino shared the note he sent to employees of the California-based company on social media, providing some insight into the reasons behind the decision. "Due to the ongoing challenges of the California cannabis market, the company's assets were foreclosed on by our lenders on August 6, 2024."
According to SFGate, the company is laying off 500 employees.
After facing several challenges throughout its existence, including a former CEO pleading guilty to bank fraud in 2021, Eaze was purchased for $54 million at an auction in August by FoundersJT, a company owned by billionaire tech investor James Henry Clark.
In Azzalino's post, he stated that an update regarding the future of the company and its employees will be provided by November 15, 2024, at the latest.