Atlantic Medicinal Partners (AMP), a medical and recreational marijuana company, has abruptly closed all three of its operating locations in Fitchburg, Massachusetts.

The sudden shutdown comes as the company faces two separate legal battles seeking a combined $6.11 million in damages.

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Legal Challenges Mount

The first lawsuit is filed by the landlord of the properties used for cultivation and retail operations.

The landlord claims AMP owes $112,000 in back rent and over $64,800 in unpaid utility fees for water and sewer services to the City of Fitchburg.

The landlord is seeking $3.54 million in damages, alleging that corporate executives misrepresented the company's financial stability.

A judge has ordered AMP to secure a $300,000 bond to address unpaid municipal taxes and water utility debts.

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The second lawsuit was filed by investor Victoria Waters in Middlesex Superior Court on May 6, 2026.

The action seeks to enforce a $2.57 million arbitration award granted to her in April 2026.

The dispute stems from a $1 million loan provided to AMP in 2019 with a five-year term.

The agreement carried a 15% annual compounding interest rate and matured in March 2024.

Court documents allege the company defaulted by failing to repay the principal and accumulated interest.

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Industry Challenges

The closures highlight broader difficulties in the cannabis sector. Despite strong consumer demand, the U.

S. cannabis market experienced its first revenue decline in a decade in 2025.

Sales dropped from $30.1 billion in 2024 to an estimated $28.6–$29.6 billion in 2025, driven by deflationary pricing pressure.

About one-third of cannabis businesses saw revenue declines in 2025, leading to budget cuts and layoffs. Additionally, companies must navigate constantly changing regulations at local and national levels.

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AMP's abrupt closure underscores how even businesses in high-demand markets can fail under financial and legal pressures.