Charlie Fox, a new upscale cannabis store in Southampton, is making headlines for more than just its high-end atmosphere. Often compared to a “Bergdorf Goodman for weed,” Charlie Fox opened its doors last week to great anticipation—only to receive a cease-and-desist order from local authorities almost immediately.
The Town of Southampton board quickly escalated the dispute by voting unanimously to file an injunction in New York State Court to shut down the shop. Officials argue that Charlie Fox needs a special permit to operate, even though its founders say they hold a valid state cannabis license.
Co-founders James Mallios and Julia Levi have vowed to fight the town in court. They maintain that their state-issued cannabis license gives them the legal right to open and operate Charlie Fox without additional local approvals. “The town of Southampton isn’t a country club or a co-op board. They can’t keep us out,” Mallios said. “Their actions are harming a small business.”
Town Attorney James Burke disagrees, stating that state approval does not override local zoning and permit requirements. He noted that the town hopes Charlie Fox will comply voluntarily, adding that if the court grants the injunction, officials will “consider our options” and work with the store to help it reopen legally.
Mallios, a prominent New York restaurateur who also owns Amali in Manhattan and Calissa in Water Mill, argues that Southampton missed the deadline to opt out of New York’s cannabis program in 2021. Since then, he claims, new officials have tried to keep cannabis businesses out, making Charlie Fox the latest flashpoint in the town’s approach to cannabis regulation.
He explained that Charlie Fox’s current certificate of occupancy is for a different use and that the planning board must issue a special permit before the shop can legally operate.
For now, the only legal cannabis sales nearby are on the Shinnecock Indian Nation’s territory, leaving Charlie Fox customers in limbo. Meanwhile, other businesses like Brown Budda and Mottz Green Grocer have filed lawsuits against Southampton, claiming arbitrary barriers to opening under state cannabis laws. Charlie Fox has not yet sued but appears ready to challenge the town in court.
As the legal battle unfolds, Charlie Fox has become a symbol of the tension between New York’s new cannabis industry and local governments still adapting to the state’s evolving regulations.