The CoV placed these businesses into a licensed environment that turned out to not only be irrelevant, but against the law. So all of the leases signed, stores opened and employees hired for City-sanctioned “licensed” pot shops put those businesses into committed scenarios from which they would essentially be setup for failure unless they had extremely deep pockets with clean funding sources.
Very, very few of these operators can afford to maintain a lease and a premises while not being able to sell anything. So we have the disaster that we now have.
The City took on something outside of its jurisdiction under the guise that it was forward thinking. But it turned into one of the largest economic missteps in the City’s history which saw many stores close and (now) government raids. This is a worst case scenario for investors who believed the City was within its authority to do what it did, who believed police turning a blind eye would actually work, and who believed federal sanctioning would just prop up what they had already started. Nope. All wrong.
The question now is, will there be lawsuits?
Police are still turning a blind eye, that is why Provincial enforcement has had to step in. I said all along that all the police had to do was confiscate illegal product and the shops would close down - exactly what the Province is doing now. No need to lay charges.
The problem is that when the City encouraged the illegal shops to open they of course didn't care who was funding them. The fact that the shops were illegal to everyone outside of the Mayor and council meant that legitimate businesses, investors and banks wouldn't invest so the shops took whatever money they could. It should be no surprise then that now that the Province has put some meat behind the rules they are finding that few of the shops qualify.