Denver-based marijuana packaging company High Supply filed for bankruptcy protection amid dramatic legal proceedings and allegations of theft and corporate espionage, BusinessDen reported.
High Supply, which produces childproof containers for dispensaries, filed for bankruptcy on Sep. 30 after accumulating $245,000 in debt.
In a note in the filing, CEO Paul Lufkins noted that the “severe financial stress” caused by “corporate espionage by former employees” prompted the move.
Lufkin is also in the middle of a suit against former High Supply co-owner Justin Walker and several former employees. He claims they attempted to start another cannabis container company, in violation of a noncompete agreement.
Tobin Kern of Volant Law, who is representing Walker and the other employees told BusinessDen that the bankruptcy filing is the result of the new owner and his “poor customer service and decision making.”
This isn’t Lufkin’s first time in court for his Denver business dealings.
In 2005, he purchased majority shares in the electronic checking company, eCashflow Systems, in 2005. He was later sued by investors for mismanaging money and by the co-founder, who alleged Lufkin never paid him in full for equity shares.
Sounds familiar.
Then in 2012, he bought eFusion, an electronic payment company. One year later, eFusion declared bankruptcy and accused former owners of looting profits.
Multimedia business & healthcare reporter Chloe Aiello can be reached via email at [email protected] or twitter.com/chlobo_ilo.
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