Blue Star Donuts of Portland files for bankruptcy protection

blue star donutsone of Portland’s most successful food franchises, has declared bankruptcy following the financial fallout from COVID-19.

The donut chain will undergo a Chapter 11 debt reorganization. In a press release, CEO Katie Poppe said the restructuring will “help us weather the storm, survive and be a stronger company.”

“Our industry has been hit from all sides during the pandemic,” Poppe said. “After the initial closures in March, we had to lay off the majority of our team and permanently close four of Portland’s eight locations. The remaining members have worked tirelessly to find solutions to this ever-evolving obstacle.”

Co-founded by Poppe and restaurateur Micah Camden in 2012, Blue Star introduced Portland to the concept of the “gourmet donut.” It expanded to eight locations in the Portland area, then opened three stores in Los Angeles.

Since the start of the pandemic, however, the brand has significantly reduced its workforce. He permanently closed his downtown flagship, as well as outposts in northwest Portland, the village of Multnomah and Progress Ridge. Its Southern California locations remain open.

According to bankruptcy filings, the company received a $545,900 loan under the Paycheck Protection Program, which likely prevented it from filing for Chapter 11 sooner.

Three of Portland’s remaining locations – in North and Southeast Portland and on the South Waterfront – will remain open during the restructuring process, although the PDX. The Portland International Airport store is temporarily closed.

Related: Other Portland chefs want to turn food into art. Micah Camden makes money.

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