Unrivaled Brands, once a major player in California’s cannabis industry, has struck a deal to settle creditor disputes in its bankruptcy case. While the process is still ongoing, the agreement will resolve multiple lawsuits, including a $15 million claim from People’s California. The terms of the settlement remain undisclosed.
A Settlement to Keep Unrivaled’s Troubles at Bay
The financial struggles of Unrivaled Brands have been well-documented, with creditors lining up to recover what they are owed. One of the most significant disputes was with People’s California, a cannabis distillate cartridge manufacturer that accused Unrivaled of defaulting on nearly $15 million in obligations. The lawsuit, filed in July 2022, alleged breach of contract.
Now, with a settlement in place, both parties seem ready to move forward, though details remain behind closed doors. A spokesperson for Unrivaled declined to comment on the agreement’s specifics, leaving stakeholders to wonder what the resolution means for the company’s future.
Sabas Carrillo, CEO of Blüm Holdings—Unrivaled’s parent company—expressed optimism in a statement, calling the settlement a positive step toward stabilizing the business. But with bankruptcy proceedings still underway, questions remain about how much relief this will actually provide.
Deep in the Red: Unrivaled’s Financial Woes
The company’s financial troubles run deep. Once known for its Korova brand, famous for ultra-potent edibles, Unrivaled found itself struggling in California’s highly competitive and overregulated cannabis market.
Court filings paint a grim picture. As of late last year, Unrivaled reported:
- $27.3 million in assets versus $34.49 million in liabilities.
- By January 2025, things got worse: just $5.8 million in assets against $43 million in liabilities.
- A mere $45,000 in cash remained on hand.
On top of that, the company owes nearly half a million in back taxes to California and over $300,000 to Orange County. Investors and lenders are now left scrambling to see what, if anything, they can recover.
Who’s Left Holding the Bag?
Unrivaled’s collapse has left multiple creditors waiting in line. According to court filings, several major claims remain unsecured, meaning repayment is uncertain. Among the biggest claims:
| Creditor | Amount Owed |
|---|---|
| Fusion LLF (Concord, CA) | $4.55 million |
| Adnant (Downey, CA) | $4.38 million |
| Arthur Chan (San Francisco, CA) | $3.1 million |
| Greenlane Holdings (Foothill Ranch, CA) | $1.8 million |
| Dominion Capital (New York, NY) | $1.7 million |
Real estate assets in Southern California are expected to be liquidated to pay off some of these debts. However, with unsecured creditors, the likelihood of full repayment remains slim.
What Comes Next?
The next court filings in Unrivaled’s bankruptcy case are due in April, signaling that the legal process is far from over. While the settlement with People’s California might ease some immediate pressure, Unrivaled still has a long way to go before its financial house is in order.
For investors and creditors, the biggest question is whether Unrivaled will emerge from bankruptcy in any recognizable form—or if it will be another cautionary tale of the harsh realities of California’s cannabis industry.