Contraction of the market in 2022 seems destined, not only because some form of market re-alignment had to come eventually but also, we imagine, other economic forces such as inflation will no doubt affect such a retail heavy sector.
The Buddy Boy owner is fully aware of market forces
Buddy Boy, a chain of seven dispensaries in Denver founded in 2014, will close on June 17.
Reports of Buddy Boy’s imminent end began circling on social media on June 9, as management told employees that all seven stores would close.
Owner John Fritzel confirmed the move to Westword, noting that he’s already closed seven growing operations, as well. According to Fritzel, the closures were all a matter of economics, and he predicts that things are likely to get worse for Colorado’s marijuana industry.
“The bigger they are, the harder they fall,” he says. “When you’ve got that kind of overhead, you just can’t keep that going. We would love to, but there’s not enough capital in this market. If there was a ray of light and the numbers were improving, we would have tried.”