BRISTOL, Tenn. — Gold Spectrum is closing all eight of its East Tennessee retail locations, eliminating 121 jobs as new state regulations on hemp-derived products take hold.
Greenbean Ventures LLC, the company’s manufacturing affiliate, filed a WARN notice with the Tennessee Department of Labor and Workforce Development on May 13. The layoffs are set to take effect July 13.
The closures coincide with the end of a state grace period tied to Tennessee House Bill 1376, which shifts oversight of hemp-derived cannabinoids from the Department of Agriculture to the Alcoholic Beverage Commission. That transition period ends June 30.
At the center of the issue is THCA, a hemp-derived compound that has made up roughly 75% of Tennessee’s hemp market. Under the new law, products containing more than 0.3% THCA on a dry weight basis are no longer considered legal hemp and cannot be sold.
CEO Zack Green said the company has little choice but to shut down.
“At some point, you have to accept the writing on the wall. There’s not going to be an extension past June 30,” Green said. “We’ve put a lot of blood, sweat and tears into this project… it’s sad to see it crumble.”
Gold Spectrum began in 2019 following the federal legalization of hemp production and grew from a farming operation into a full-scale business including manufacturing and retail.
Employees say the closure is devastating. Ashley Ellis, who works at the company’s production facility, said the team has become like family.
“It’s very heartbreaking… to be possibly losing what I consider to be family already,” Ellis said.
Ellis also argued that stricter enforcement and age limits could be a better solution than restrictions that effectively eliminate certain products.
State leaders, however, maintain the changes are necessary. Sen. Richard Briggs said THCA exceeding 0.3% is legally considered marijuana at both the state and federal level.
Meanwhile, company leaders warn that unregulated online sales remain a concern, pointing to research showing out-of-state sellers shipping THCA products into Tennessee without testing or oversight.
The Tennessee Wildlife Resources Agency will partner with local law enforcement to enforce the new rules, which also include licensing requirements, taxes, and restrictions on where products can be sold.
As the July deadline approaches, workers and communities are preparing for the impact of another shift in the rapidly evolving hemp industry.
