Green Growth Brands, like many current companies in the CBD marketplace, is having troubles keeping things afloat. While the retailer is in the process of trying to unload its line of mall-based CBD kiosks, it announced that its CEO was also stepping down, effective immediately.
Peter Horvath, the former CEO came to Ohio after leading strategy for other retail powerhouses like American Eagle Outfitters, DSW, Limited Brands, and Victoria’s Secret.
This announcement punctuates a rocky period for the company. Earlier in the year they started trying to sell off the CBD side of the business after a slow holiday season. They reported a $35.9 million loss in Q4 of 2019, a 149% increase from their losses in 2018. Horvath told the press that it was due to the high overhead costs and constraints on liquidity that came with the business. They are selling the brands to the BRN Group for undisclosed terms that include retaining a 20% stake.
“While we’re currently in the process of selling the CBD business, we’re extremely proud by how we grew this business from a mere idea to products that have reached over 300,000 consumers in just nine short months,” Peter Horvarth previously told investors.
All of those kiosks are currently closed due to the coronavirus outbreak. The company has also suspended e-commerce sales for its Seventh Sense topical CBD line.
Back in September, Green Growth laid off close to 50 employees to help them reduce their costs.
Taking over as interim CEO is Randy Whitaker, former Chief Operating Officer.
The company is hoping to shed the riskier side of their business so that they can focus on running marijuana dispensaries. The company currently owns The Source marijuana dispensaries in Nevada, as well as having stores in Massachusetts and Florida.