Portland donut chain Blue Star downsizes by abruptly closing 2 shops

PORTLAND, Ore. (KOIN) — One of Portland’s top donut chains has unexpectedly shuttered two of its six locations.

Blue Star announced on Jan. 1 that its North Mississippi Avenue and Lake Oswego shops had closed, effective immediately. According to a social media post, company leaders have shut down these shops in an attempt to “ensure the long-term stability” of the chain.

“Being a small business comes with a host of extremes,” Blue Star wrote, in part, on Instagram. “While we might flex like a larger business, the truth is that there’s a very small, scrappy, hard-working group of people behind the scenes over here doing their darndest to keep putting out a high-quality product that we’re proud of, in a world of fast-rising food, labor, and rent costs.”

The chain, known for its “donuts for grown-ups” and coffee, opened its first location in 2012. In the 13 years since, the company has racked up mentions from Bon Appétit, Condé Nast Traveler, Forbes and Vogue.

Blue Star last downsized its footprint during the COVID-19 pandemic. The donut shop temporarily shuttered multiple locations in mid-March 2020, before announcing permanent closures at Northwest 23rd Avenue and in Multnomah Village, Progress Ridge and Downtown Portland.

Later that August, the chain filed for Chapter 11 bankruptcy protection.

At the time, the company’s shops on Southeast Division Street and in Los Angeles’ Venice neighborhood were the only ones in operation. Eater magazine reported that the California shop abruptly closed this summer. The Southeast Portland location is still in business.

The other remaining Blue Stars can be found on the South Waterfront, in the Goose Hollow neighborhood and at the Portland International Airport.

“Thank you for being an unforgettable part of our journey, and we hope to see your smiling faces at our other locations,” the company said.

Pip's Original Donuts & Chai recently announced it was shuttering its Beaverton location due to "radically deteriorating" economic conditions amid a rent increase.

"Sometimes you have to cut off the arm to save the body, and that's really what it felt like here," Pip's owners Nate and Jamie Snell said on the company's social media account.

Fellow Portland-area chains Jim & Patty’s Coffee, Boxer and Hotlips Pizza have also downsized or closed entirely in recent years.