GenCanna asked to file bankruptcy

WINCHESTER, Ky. (WTVQ) — A hemp-processing company in Winchester is being asked to file bankruptcy to pay off its debts owed to three companies.

The bankruptcy petition filed in federal court claims GenCanna isn’t paying its debts.

The three companies, including Integrity/Architecture in Lexington, claim GenCanna in total owes them a little over $50,000.

The hemp company does have the option to object but only has 20 days to respond.

It’s been a tough few months for GenCanna with a fire.explosion, downsizing staff and lawsuits.

In October, a group of Harrison County hemp farmers sued the company for $5-million over a failed joint project and what it called “low quality” hemp seeds from GencCnna.

For several years, Kentucky leaders have called hemp the state’s new cash crop but now, the industry seems to be suffering.

In a letter to the kentucky Hemp Farmers Association, Agriculture Commissioner Ryan Quarles says “the increase in the nation’s hemp supply has not been matched by like increase in national demand”.

He also partially blames the FDA for preventing hemp’s growth.

In another letter, he asks Kentucky’s congressmen to help lobby the administration to regulate CBD.

Right now, Quarles’ staff says he’s in D.C. meeting with the FDA’s deputy commissioner.

We reached out to GenCanna for its response to the bankruptcy petition. The company said it won’t have a comment today.