Thor Wins Unpaid-Rent Suit Against MedMen

Thor Equities’ thunder roared over a Chicago cannabis tenant, as a judge’s order allows its unpaid-rent suit to move to another venue.

A judge granted the private equity firm’s request to dismiss its suit in federal court over alleged unpaid rent at a Fulton Market space against cannabis dispensary MedMen last month.

Thor has said it plans to refile its case in a state court within a jurisdiction that the weed business is legal and regulated. MedMen had tried to prevent its landlord’s suit from moving to a state court by filing a separate lawsuit, arguing that marijuana’s federally illegal status prevents Thor from being able to enforce a lease. Attorneys representing MedMen and Thor didn’t return requests for comment.

The case demonstrates the quandaries that can arise for cannabis businesses landlords. It’s a growing industry that is gaining greater legitimacy but remains under a patchwork of varying state and federal regulations.

Thor sued MedMen earlier this year for nearly $1 million in unpaid rent at 942-944 West Fulton Street. The dispensary leased the space for more than two years and owed more than $950,000 for failing to pay the base rent of $70,727, operating costs of $2,667 and insurance costs of $556 for 11 months, according to the landlord’s initial complaint.

The dispensary inked a 15-year lease for the 23,000-square-foot warehouse style space in August 2019, months before Illinois legalized marijuana on Jan. 1, 2020. The lease provided for an annual rent of $800,000, to increase each year to $1.2 million in the fifteenth year.

MedMen’s subsequent filing doesn’t dispute that the business hasn’t paid rent since before August 2021 and surrendered the premises at 942-944 West Fulton Street to Thor Equities in February.

This isn’t the first time Thor has sued a cannabis business over unpaid rent. The High Times dispensary had to pay the firm $4.9 million as a result of a lawsuit from Thor, though the business never opened in San Francisco.