The Blinc Group, a cannabis vape manufacturer, has declared Chapter 7 bankruptcy in New York, citing $1 million in liabilities. The company’s bankruptcy filing was submitted on March 14, revealing that it has not fulfilled payments to various creditors, including tax authorities, suppliers, and media firms, as reported by Green Market Report.
In the filing, Blinc identified itself as a vaping technology company, which is significant because traditional plant-touching cannabis businesses are not permitted to file for Chapter 7 bankruptcy. This type of bankruptcy allows a court-appointed trustee to liquidate a debtor’s nonexempt assets in order to pay creditors, ultimately discharging the debtor from most unsecured debts and providing a fresh financial start.
The creditors listed in Blinc’s filing include notable entities such as 7Thirty Fund, Arcview Collective Fund, and the U.S. Internal Revenue Service, along with several state departments of revenue from Arizona, Florida, Georgia, Illinois, Michigan, New Jersey, New York, Ohio, and Oregon. Additionally, the company owes money to technology firms like Google, Microsoft, and Hubspot, as well as media organizations including Meltwater News and Politico. Blinc also has several Chinese companies listed as creditors.
This bankruptcy filing highlights the financial challenges faced by companies in the cannabis sector, particularly in the vaping market. The situation serves as a reminder of the complexities and risks involved in the rapidly evolving cannabis industry.
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