Over the years, legal cannabis companies expanded rapidly across the U.S. as more states opened their markets to medical and recreational marijuana.
That growth created sprawling businesses that extend far beyond dispensary storefronts.
Behind many cannabis retailers are cultivation centers where marijuana plants are grown and harvested.
Additionally, there are facilities that process flower into products ranging from pre-rolls and vapes to edibles and other cannabis products.
Now, one major cannabis operator is significantly reducing that infrastructure in one of its biggest markets.
Parallel cuts cultivation and cannabis production jobs
Parallel, the cannabis company behind the Surterra Wellness dispensary chain, is permanently closing its two Florida facilities, eliminating 211 jobs.
The closures affect operations at 2324 W. Lake Drive in Wimauma and 3516 Hamilton Road in Lakeland, according to a Worker Adjustment and Retraining Notification (WARN), reviewed by TheStreet.
Parallel said the layoffs began on July 6 or during the 14-day period that followed.
More Layoffs:
Employees were placed on paid administrative leave beginning July 6 and were expected to continue receiving their regular compensation and benefits through their respective termination dates without being required to report to work.
At the Wimauma facility, affected positions include cultivation technicians, production technicians, processing technicians, laboratory workers, packaging employees, and supervisors overseeing extraction and refinement.
Among the largest groups affected are 43 Production Technician I employees, 27 cultivation technicians, 12 production team leads, and 11 Processing Technician II workers.
At the Lakeland facility, the cuts include 22 cultivation technicians, 5 cultivation team leads, and employees working in harvesting, pest management, environmental services, research and development, and facility operations.
Parallel is a multi-state cannabis business with operations spanning across multiple stages of the industry, from cultivation and manufacturing through retail.
The company currently lists Surterra Wellness as its Florida retail brand, operating 45 Surterra stores in the state.
In Massachusetts, Parallel operates under the NETA brand, and in Texas, under the Goodblend brand.
Surterra offers medical marijuana products that include cannabis flower, pre-rolls, vaporizers, edibles, and other cannabinoid products.
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Parallel, company behind Surterra Wellness, closes 2 facilities in Florida.Scott Shymko / Getty Images
Parallel is nearing a possible change in control
The facility closures come as Parallel approaches the possible conclusion of a financial restructuring that could transfer control of certain company assets to its creditors.
Creditors affiliated with SunStream Bancorp, a cannabis-investment joint venture in which Canadian cannabis company SNDL holds an interest, previously provided financing to Parallel.
After Parallel encountered financial difficulties, those creditors entered into a strict foreclosure agreement covering certain assets that had been pledged as security for the debt.
A strict foreclosure is different from a conventional acquisition.
Instead of one company buying another, secured creditors can take control of pledged assets to satisfy outstanding debt, subject to regulatory approvals and the terms of the agreement.
The proposed transaction would place certain Parallel operations under the control of an entity formed for the benefit of its creditors.
The process began in 2023 and has since cleared several major hurdles.
The Florida Department of Health approved the transfer of Parallel’s cannabis license in February 2025, according to SNDL’s first-quarter 2026 earnings reports.
“In December 2025, a settlement was reached resolving the final remaining litigation, and SNDL currently expects the strict foreclosure process to close in Q3 2026, subject to completion of remaining steps, satisfaction of applicable conditions, and any required approvals,” SNDL said in the earnings release.
TheStreet reached out to Parallel for information about why the facilities were closing and whether the decision was connected to the restructuring.
But the company did not reply to a request for comment.
Cannabis market grows as operators face pressure
Parallel’s cuts come as the broader cannabis market continues to expand, even as individual operators face a difficult and uneven business environment.
Fortune Business Insights valued the global cannabis market at $102.72 billion in 2025 and estimates it will grow to $137.67 billion in 2026.
The research firm projects the market could reach approximately $1.43 trillion by 2034, representing a compound annual growth rate (CAGR) of about 34% between 2026 and 2034.
North America accounted for approximately 83.8% of the global market in 2025, supported by legalization, medical use, and consumer demand.
But strong projections for the overall industry do not mean every cannabis company is growing at the same pace.
Operators still face pricing competition, high production costs, varying state regulations, and federal tax restrictions.
Although the results do not reflect Parallel’s operations, recent SNDL earnings illustrate the uneven conditions facing cannabis businesses.
Revenue from SNDL’s own cannabis operations fell 14.2% year over year during the first quarter of 2026, citing softer demand, inventory reductions, and changes in the timing of business-to-business orders.
Parallel continues to operate 45 Surterra Wellness locations across Florida, but the two facility closures represent a significant reduction in the cultivation and production infrastructure supporting that retail network.
Related: 52-year-old international restaurant chain closing all locations
This story was originally published by TheStreet on Jul 28, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.
