Blue Star Donuts to file for bankruptcy protection

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Blue Star Donuts had to permanently close four of their eight locations

PORTLAND, Ore. (KOIN) — One of Portland’s most well-known donut shops will be filing for bankruptcy protection following closures due to COVID-19.

Blue Star Donuts had to permanently close four of their eight locations around the city and lay off a majority of their employees throughout the pandemic. Now, the gourmet donut shop will file for Chapter 11 bankruptcy protection with Subchapter V treatment. The company will then seek to restructure.

“Ultimately, we made a decision that we believe will help us pivot, unlock the future, and be better than ever. Blue Star intends to remain fully operational in the current capacity throughout this process. The company plans to add hours and days of operation as they are safely able to do so. “It is our priority to keep our team and our community safe,” Blue Star Co-Founder and CEO Katie Poppe said in a released statement. “We’ve been thoughtful every step of the way, from installing doorway kiosks for contactless pick up, to developing a new line of grocery donuts to meet our fans at the grocery store. We believe that this restructuring will help us weather the storm, survive, and emerge as a stronger business.”

Blue Star Donuts originally opened in Portland back in 2012. They are among many businesses around the state and the country forced to close due to coronavirus-related shutdowns.

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