KNOXVILLE — Andy Chesney, a West Knoxville hemp retailer, announced he will close Hemp House after June 30. The closure comes as new Tennessee regulations transferring oversight to the Tennessee Alcoholic Beverage Commission and increasing operational costs take effect.
A ban on the sale of many THCA products, including vapes, smokable flower, wax, and larger doses of edibles, takes effect on July 1. The legislation lowers serving limits, restricts package sizes, and transfers enforcement authority from the Tennessee Department of Agriculture to the commission. A 2018 federal farm bill permitted the nationwide production and sale of hemp-derived products.
Chesney has operated Hemp House for eight years. He stated that the updated distribution framework requires retailers to purchase inventory through licensed distributors rather than directly from manufacturers. The revised distribution model increased wholesale product costs from $5 to $15 per unit.
"For the last eight years, I've made my living this way," Chesney said. "This is about consumers." He said, "Only those with the most money are going to survive this. Unfortunately, I'm just not one of those businesses. At the moment, I don't see a path forward after June 30th." Chesney added, "It is elimination by regulation."
State Sen. Richard Briggs sponsored the hemp legislation. "It gives the public more confidence that the product they're taking is a safe product," Briggs said. "It's all based on demand, but no one should be put out of business," he said. "No one would be put out of business that's selling legal products."