John Miller
There have been several instances of mushroom companies shutting down. For example, in 2023, it was announced that Donna Bella Farms, a mushroom farm in Berks County, would be closing down, resulting in the layoff of approximately 161 employees. In the same year, Monterey Mushrooms, one of the largest mushroom producers in the United States, decided to shut down its 275-acre Royal Oaks facility, terminating 605 positions. Additionally, a magic mushroom shop called The Mushroom Cabinet in Hamilton was shut down by police just one day after opening due to the illegal sale of psilocybin mushrooms. These instances highlight the dynamic nature of the mushroom industry and the various factors that can lead to the closure of mushroom-related businesses.
| Characteristics | Values |
|---|---|
| Company Name | Monterey Mushrooms |
| Facility Location | Royal Oaks, North Monterey County |
| Facility Size | 275 acres |
| Number of Positions Terminated | 605 |
| Reason for Shutdown | Aging infrastructure and less competitive operating model |
| Other Facilities | Four remaining farms, with the closest 36 miles north in Morgan Hill |
| Related Events | Construction of a new attraction in the long-vacant Cannery Row movie theater |
| Similar Incidents | Shut down of a magic mushroom shop in Hamilton, a mushroom company in Pa. |
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What You'll Learn
Monterey Mushrooms closed its Royal Oaks facility
Monterey Mushrooms, one of the largest mushroom producers in the United States, closed its 275-acre Royal Oaks facility in North Monterey County in December 2024. The company reported that 605 people would be terminated by the end of 2024. The decision to close the facility was made after a long review and was due to several factors, including high labor costs, adverse weather, California's regulatory environment, and the farm's aging infrastructure. The company cited the challenges of operating in California and pressures on the produce industry, with consumers seeking value.
The Royal Oaks facility was one of the largest in terms of facility size, but it was only middle-of-the-road in terms of production. The company had no plans to open a new facility at the time of the closure, choosing to focus on supporting affected workers and customers. The closure of the Royal Oaks facility resulted in the layoff of more than 500 workers, many of whom lived in Watsonville and had worked at the company for many years. The closure of the facility was a loss of good union jobs, and employees had accumulated benefits, raises, and pensions through the union.
Monterey Mushrooms continues to operate four additional farms across the country, with the closest facility 36 miles north in Morgan Hill, California. The company plans to allocate several million dollars to enhance efficiency, sustainable quality, and industry-leading biotech capabilities. The closure of the Royal Oaks facility was a strategic step toward sustainable growth and continued excellence in mushroom production.
The company has faced challenges in recent years, including lawsuits and settlements for polluting waterways, as well as water quality violations. Despite these issues, Monterey Mushrooms remains a significant contributor to the economy of Monterey County, where agriculture contributes over $3.9 billion per year. Mushrooms are one of 156 crops grown in the county, and Monterey Mushrooms was at one point shipping about 850,000 pounds of white caps and portobellos weekly.
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Donna Bella Farms in Berks County ceased operations
Donna Bella Farms in Berks County, Pennsylvania, ceased operations in 2023, laying off 161 workers. The company was a joint venture between Giorgi Mushroom Co. and Monterey Mushrooms, the latter being one of the largest mushroom producers in the United States.
The decision to close the farm was due to the current business climate, which included low demand for mushrooms. The closure of Donna Bella Farms was expected to result in the termination of 123 direct hires and 38 employees from a temp agency. The Worker Adjustment and Retraining Act Notice (WARN) was issued to the Pennsylvania Department of Labor & Industry, and all affected employees were notified.
The parent company, Giorgi Mushroom Co., continued its operations and anticipated providing employment opportunities to a significant number of Donna Bella Farms employees. The company is the largest single-location mushroom farm in the world, with a wide range of operations and a high annual production volume.
The closure of Donna Bella Farms in Berks County was a significant event, impacting a large number of employees and contributing to the local agriculture industry. The decision to cease operations was influenced by the challenging business climate and the need to adapt to changing market demands.
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Hamilton police shut down a shop selling illegal magic mushrooms
Hamilton Police shut down a shop called The Mushroom Cabinet on Main Street East, which was selling illegal magic mushrooms. The shop was open for just three hours on its second day of operations when officers arrived and arrested two people before shutting the store down and confiscating mushrooms as evidence.
Psilocybin mushrooms, also known as magic mushrooms, are illegal under the Controlled Drugs and Substance Act. Hamilton police said they had obtained a warrant on the Tuesday morning before the shop was raided on the Wednesday to shut the business down.
The Mushroom Cabinet had announced its opening on social media, calling it the city's "first and only mushroom dispensary". The owner, John Francis, believes that access to the medicinal use of mushrooms can help people suffering from mental health issues or addictions.
The shop appeared to open again soon after the bust, but it is unclear whether this was the same business operating under a new name or a new owner. The store also sells the psychedelic drug in edibles and powder and operates a mail-order business.
Some people see the emergence of these mushroom stores as a positive form of civil disobedience, calling out drug policies, especially around psychedelics, which they believe to be outdated and incorrect. They argue that alcohol is a much more harmful drug to both the individual and society, and that enforcing these laws is not what police should be doing.
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Toronto police arrested two men from a Shroomyz dispensary
Toronto police raided Shroomyz, the city's first magic mushroom dispensary, and arrested two men. The raid and arrests were the first since the dispensary opened in September at 488 Queen St. W. The sale of psilocybin, the active ingredient in magic mushrooms, is illegal under the Controlled Drug and Substances Act. However, the city has no plans to shut down the dispensary, leaving it operating in a legal grey area.
Shroomyz is a dispensary chain that first opened in Ottawa. It is Toronto's only magic mushroom dispensary. The city confirmed that Shroomyz has no business license, but any crackdown on its operations would be a "police matter." The city does not have the jurisdiction to enforce the Controlled Drug and Substances Act, nor does it issue business licenses for this type of business.
The two men arrested were Fabricio Osores, 20, of Hamilton, and Seyon Tharmathasan, 23, of Toronto. They have been charged with possession of a Schedule III substance for the purpose of trafficking and possession of proceeds of crime over $5,000. Police seized a large quantity of dried psilocybin, psilocybin-derived edibles, and a quantity of proceeds of crime while executing the search warrant.
The dispensary's manager previously stated that the store exists as a "medical protest." Paul Lewin, a lawyer specializing in cannabis and psychedelics, said that Shroomyz is filling a void for people who use psilocybin for medical purposes. He added that the law is "out of touch" and that many patients who could benefit from medical psilocybin cannot access it. Lewin suggested that the city should focus on harm reduction tools to allow psilocybin to be available in a "safe and responsible" manner.
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The Mushroom Cabinet was open for three hours on its second day
The Mushroom Cabinet, a shop in Hamilton selling psilocybin or 'magic' mushrooms, was open for only three hours on its second day of operations before being shut down by the police. Officers arrived at the shop, arrested two people, and confiscated mushrooms as evidence.
According to a release by the Hamilton Police Service, the shop was shut down as psilocybin mushrooms are illegal under the Controlled Drugs and Substance Act. The previous day, the police had obtained a warrant to shut the business down.
The Mushroom Cabinet is not the only shop selling magic mushrooms to have been shut down by the police. In November, a dispensary chain called Shroomyz, which first opened in Ottawa, became Toronto's first mushroom dispensary. Two men associated with the store, one from Hamilton and one from Toronto, were arrested and charged following an investigation.
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Frequently asked questions
I found no evidence of a company called Mushroom Co. shutting down. However, there are a few instances of companies with similar names closing down some of their operations. For example, Monterey Mushrooms shut down its Royal Oaks facility, and Donna Bella Farms, a mushroom company in Pennsylvania, ceased operations.
No, the Mushroom Group, an Australian music and entertainment company, is still operational. In 2024, they restructured their company, merging their recording, publishing, and neighbouring rights functions into a new division called Mushroom Music.
Mushroom Records was a subsidiary of the Mushroom Group. It is no longer owned by the Group and is now a part of Warner Bros. However, it is unclear if it shut down as a result of this change.
