Unrivaled Brands, Inc. UNRV provided a corporate update related to its 100-day turnaround plan and strategic restructuring to reduce costs, drive efficiency, and identify a path to profitable growth.
Eric Baum, chairman of the board of Unrivaled Brands, stated, “In the company’s initial communications to shareholders in May, we indicated our immediate focus was on our 100-day plan to stabilize operations, protect our performing assets, create a sustainable debt position, and put us on a path to profitability in an increasingly challenging industry and troubled California market. I am pleased to announce progress against this plan – though humbly recognize that there is still significant work ahead of us.
The company has completed the following:
Outsourcing distribution. In June 2022, Unrivaled partnered with a leading North American distributor of cannabis and cannabis accessories, with a strong fulfillment infrastructure, to manage distribution of its brands, while simultaneously exiting third-party distribution engagements which were negatively affecting cash flow.
Closing under-performing retail. Unrivaled closed under-performing retail locations in Los Angeles, San Leandro, and Sacramento, California. Where possible, assets from these sites have been deployed elsewhere to support other business operations. The company is actively marketing the closed assets and licenses.
Reduction in management and workforce. As of Aug 1, 2022, Unrivaled headcount is 188 versus 338 at the end of Q1 2022. Much of this reduction came from site closures and reduction of corporate headcount. Overall, payroll has been reduced by roughly 40%, with a focus on bringing payroll spend within a healthy range in line with the go-forward size of the company.