JAY-Z‘s luxury weed brand Monogram is reportedly in financial trouble despite receiving initial backing of over half a billion dollars.
Joints from the company, which launched in 2020, retailed for $50, ten times the average price in California.
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The company originally estimated it would gross upwards of $300 million in its first year but their accounts for 2022 show that Monogram’s parent company TPCO suffered a $587 million net loss, according to SFGate.
Following the filing, Monogram appears to have been sold to a separate company called Gold Flora, which is also in dire financial straights.
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This year, Gold Flora revealed it had suffered losses of $56 million, while it has debts of over $60 million more than it has in assets.
The company has also been sued for allegedly not paying invoices, apparently owing a cannabis farm over $200,000.
JAY-Z, who was chief visionary officer for Monogram and a central point of its initial publicity splash, has not yet commented on the company’s financial woes.
Monogram appears to be a rare miss in JAY-Z’s vast business empire, which has powered his personal net worth to $2.5 billion, according to Forbes.
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Most recently, he bought into the luxury watch marketplace Wristcheck.
The rap legend, who himself is an avid watch collector, was part of the company’s latest round of fundraising in July, which totaled $5 million.
The website allows collectors to buy and sell luxury timepieces that have already been authenticated by watchmakers, so those spending up to seven figures on a watch know it’s the real deal.
Co-founder Austen Chu said of Hov’s investment in a statement: “As an entrepreneur, JAY-Z has always been an inspiration to me. I remember growing up to his music — his lyrics not only introduced me to watch brands like Audemars Piguet, but also fueled my love for watches even further, as he bridged the gap between watches and pop culture.”
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JAY-Z is also known for his extensive investment holdings, which include a large real estate portfolio, an early investment in Uber and stakes in marijuana software company Flowhub and plant-based milk company Oatly, as well as his Roc Nation record label.
He is also a former owner of NBA team Brooklyn Nets and recently announced plans to get into the casino business.
