ORANGE — Orange Cannabis Co. has at least temporarily closed its marijuana dispensary at 5 South Main St. while those in charge review marketplace trends.

The closure began on July 15 and will remain in effect through at least the end of the year, with a potential reopening in 2025, according to company leaders. However, the indoor cultivation facility the company operates in Orange to produce cannabis products for the wholesale market in Massachusetts is not affected.

“We are confident that the decision to close the store, while difficult and disappointing in the short-term, is in the best long-term interest of our company’s position in the Massachusetts market and for our continued success as a significant investor and employer here in Orange and central Massachusetts,” President/CEO Sean D. Power and Head of Sales Kurt Coppage wrote in a letter to customers that was shared with the Greenfield Recorder.

The two wrote that this decision was made for several reasons, including the location’s increasing status as a financial burden despite marginal success since the company took over the operation in April 2022.

“Revenues have declined in recent months and our rent has increased. Importantly, labor costs and other significant expenses at the dispensary cannot be deducted under federal law, which makes the already thin profit margin less manageable,” the letter reads. “We have made this decision in concert with the appropriate state and local authorities to ensure the orderly suspension of operations at the store, the secure transfer of goods and property within the space, and the fair and lawful notification and compensation of our dispensary staff, who have been extended full benefits in accordance with our existing agreements.”

Power and Coppage also thanked their customers for their support and goodwill over the past few years.

“Orange is a wonderful community that we are proud and excited to be a part of as we continue our mission,” they wrote.

Josh Silver originally opened the dispensary as Silver Therapeutics in July 2020 but he sold it to the new owners, who renamed it, on April 5, 2022. There are still Silver Therapeutics locations in Williamstown, Palmer and Roslindale as well as in Vermont, Maine and New York. Power Fund Partners now owns the license at 5 South Main St. and the Orange dispensary is the only one it operates. Orange Cannabis Co. is the only dispensary in town.

Reach Domenic Poli at: dpoli@recorder.com or 413-930-4120.