Skip to content

Cannabis retailer Tokyo Smoke starts stalking horse sales process

TORONTO — Cannabis retailer Tokyo Smoke says it has begun a stalking horse sales process. The sales process allowed by parent company TS Investments Corp. has priced the beleaguered business at $77 million.
bb97fe1e6782528a72098a1508080101693745467f18dff8d806a4607d719867
The logo for cannabis retailer Tokyo Smoke is shown on a tin of matches in a photo illustration in Toronto on August 30, 2024. THE CANADIAN PRESS/Giordano Ciampini

TORONTO — Cannabis retailer Tokyo Smoke says it has begun a stalking horse sales process.

The sales process allowed by parent company TS Investments Corp. has priced the beleaguered business at $77 million.

A stalking horse bid is an offer to buy a bankrupt firm or its assets that is arranged ahead of an auction and typically sets a floor price for the assets.

Tokyo Smoke began seeking creditor protection last month at the same time it announced it would close 29 stores.

The creditor protection filing was designed to help the company better navigate the current cannabis market and regulatory conditions, which it says have changed "significantly."

OEG Retail Cannabis, a firm operated by the owner of the Edmonton Oilers hockey team, bought the Tokyo Smoke brand from pot company Canopy Growth Corp. in 2022.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press

push icon
Be the first to read breaking stories. Enable push notifications on your device. Disable anytime.
No thanks