Tokyo Smoke, an award-winning cannabis retailer, announced Wednesday it has begun a restructuring of its business and obtained an Initial Order under the Companies’ Creditors Arrangement Act (CCAA) from the Ontario Superior Court of Justice in Canada. As a result, it will be shutting 29 of its stores.

What Happened: The Canadian company, previously owned by Canopy Growth Corp (NASDAQ:CGC), provides regulated products online as well as across 61 retail locations. It has secured financing to continue normal operations while it restructures its business.

This will include, per a company press release, "adjusting its total retail footprint through the closing of 29 locations, with continued operation of approximately 167 locations across Ontario, Manitoba, Saskatchewan and Newfoundland and Labrador."

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This move encompasses Tokyo Smoke's various retail programs and its medical cannabis business. Retail locations unaffected by the restructuring will continue to operate in the normal course with no disruption or change to its online business or to The High Roller Club loyalty program, the company stated.

Following a thorough review of all available options and alternatives, Tokyo Smoke began the restructuring to align its operations with current market and regulatory conditions, which have significantly changed since the initial licensing regimes in the provinces where Tokyo Smoke operates were introduced.

The company says it will pursue an exit from CCAA protection “as a stronger business, better positioned to continue providing premium products to its customers over the long-term while continuing to provide jobs to its more than 500 dedicated employees across Canada.”

Reconstruct LLP is acting as legal advisors to Tokyo Smoke and Alvarez & Marsal Canada Inc. is acting as the CCAA Monitor. Additional information regarding the CCAA proceedings will be made available on the Monitor’s website at alvarezandmarsal.com/TokyoSmoke.

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