More than 30 Whatcom and Skagit County businesses have closed in 2026 as a 36% drop in Canadian visitor traffic adds pressure to the local economy.
BELLINGHAM, Wash. — Declining border traffic and rising inflation are taking their toll on area businesses. Whether your favorite place to shop or your favorite place to eat, you never imagine one of your local comforts that are quite popular could disappear, but that is the reality more and more these days.
It’s not just restaurants as a growing list of retailers and other businesses have also closed or announced plans to close across Whatcom and Skagit counties in 2026.
Some closures involve longtime downtown businesses. Others affect smaller neighborhood shops, restaurants and mobile food businesses.
Owners have often cited retirement, rising costs, declining sales, lease issues and other personal or business decisions.
Why Canadian Traffic Matters
The impact of declining customer traffic is becoming increasingly visible on the business landscape across Whatcom and Skagit counties, with restaurants, retailers and other local businesses closing or announcing plans to shut down in 2026.
The decline in Canadian visitors has added pressure to businesses that rely on cross-border customers. Personal vehicle traffic entering Whatcom County fell 24% in 2025 compared to 2024, according to Western Washington University’s Border Policy Research Institute, with B.C.-plated vehicles specifically down 36% over that same period.
Businesses Report Damage
10 Years Fear For Survival
-16% Buffalo, -6% Detroit
Are Long-Term Or Permanent
Younger Businesses Feel It Most
A survey of 62 Whatcom County businesses conducted by the Border Policy Research Institute and the Bellingham Regional Chamber of Commerce between March and May 2026 found food and beverage businesses reporting the sharpest impact, with 91% saying the decline in Canadian visitors has damaged their business and 64% concerned about their survival. Retailers reported similar strain, with 85% citing damage and 60% concerned about survival.
Younger businesses reported more concern than established ones. Among businesses open less than 10 years, 67% said they were worried about survival, compared with 44% of businesses open 10 years or more.
The decline has hit Whatcom County harder than other major U.S.-Canada border crossings. Personal vehicle traffic fell 24% in Whatcom County, compared to 16% at the Buffalo/Niagara crossing and 6% at Detroit/Windsor, according to the Border Policy Research Institute.
“We really depend on our neighbors to the North for our survival!”
Whatcom County Business Owner, BPRI/Chamber Survey Respondent
Among businesses that changed how they operate in response to the decline, 73% described those changes as long-term or permanent rather than temporary.
Whatcom County Businesses That Have Closed
Here is a look at confirmed 2026 closures and businesses that have announced upcoming closing dates.
or Closing in 2026
Technologies, Oct. 15
Whatcom & Skagit
The closures began early in the year and continued through the summer.
Closed its Bellis Fair location Jan. 27 after more than 30 years in Bellingham.
Closed its Bellis Fair location at the end of January after the owner retired.
Closed in Bellingham after eight years in business.
Opened in December 2025 but closed less than three months later.
Closed its 1400 W. Holly St. location.
Closed at the end of March.
Held its final service. The owners said they were returning to Seattle.
Closed after nearly a decade in Bellingham. Owner Dora Ruiz cited rising costs and declining revenue.
Spring And Summer Closures Continue
Closed its downtown storefront after nearly 15 years. The business continues through other operations.
Its Railroad Avenue location closed. The company cited rising operating costs and declining foot traffic.
Closed its Meridian Street location after about 10 months. The company continues to operate in Bellingham.
Closed its Birch Bay store. The owner moved the business to South Surrey, British Columbia.
Closed after more than seven years at 1308 Railroad Ave.
Closed after more than 20 years downtown.
Held its final day after the business reached the end of its lease.
Announced its closure, citing downtown rent costs.
Closed in Fairhaven after nearly two years. The owners said sales had fallen significantly and the business was no longer sustainable.
Closed on Lummi Island after five years under its current owners.
Closed in Blaine after almost eight years under its current owners.
Closed in Lynden. The owners said they had exhausted their options and could no longer continue normal spa operations.
More Whatcom Closures Are Coming
Several other Whatcom County businesses have announced closing dates for September and October.
Held its final service after 15 years in Bellingham. The owners are retiring.
Served its final customers in Fairhaven after 17 years.
The restaurant’s closure does not mark the end of Magdalena Theisen’s culinary work.
“The restaurant will close, but my passion and love for cooking are staying with me. I’m not leaving these 17 years behind. I’m taking the friendships, memories, experience, and all the love with me into whatever comes next.”
Magdalena Theisen, Owner, Magdalena’s Bistro & Creperie
More September And October Closures
Announced its closure. The business had not announced a final closing date at the time of publication.
Plans to close in Fairhaven. The business said a rent increase played a role in the decision.
Scheduled to serve its final customers. Sweet Bay Cafe will remain in the same space.
Scheduled to close after 12 years.
Will close its food truck operation. The owners, Aiza and Bart, announced the decision Sept. 10.
Scheduled to close in Fairhaven after more than two years.
Has announced its final day after more than 20 years in Bellingham.
Owners Reflect On Closing Their Doors
Lumpia Luv is continuing service at Beach Cat Brewing locations in Bellingham and Birch Bay on its remaining schedule. The owners also said they plan to run some of their most requested specials before closing.
“We are both excited about our next adventure and at the same time sad about leaving behind such an amazing place and loyal happy customers.”
Aiza and Bart, Owners, Lumpia Luv
In a statement announcing the Corner Taphouse closure, the business thanked customers and the community for years of support.
“We’ve built lifelong friendships, shared countless memories, and become a small part of this community—and for that, we’ll always be grateful.”
Corner Taphouse, Fairhaven
The closure comes after a significant increase in the business’s rent. The Taphouse plans to share additional information about its final days and upcoming events before shutting its doors.
The future of Mount Bakery’s downtown operation has also been the subject of closure and ownership discussions, while the Fairhaven location continues operating.
A Major Bellingham Employer Is Also Closing
The 2026 closures extend beyond restaurants and retail.
Alpha Technologies filed a Washington Worker Adjustment and Retraining Notification, or WARN, notice involving the permanent closure of its Bellingham operations unit.
The closure is expected to affect 75 workers, with the closure listed for Oct. 15.
The company is relocating or contracting out the affected operations.
West Marine also announced the closure of its Bellingham store as part of a broader corporate restructuring.
Skagit County Closures
Permanently closed at 2820 Commercial Ave. in Anacortes. A Washington WARN filing listed 14 affected employees.
Closed in Burlington. The space did not remain vacant, however, as another restaurant concept from the same group moved into the location.
Announced its closure in Burlington. Owner Mia Peterson cited retirement.
That makes the El Cortijo closure different from a business leaving the market entirely.
Skagit County businesses have also faced significant pressure from the ongoing Division Street Bridge project in Mount Vernon.
A Skagit Valley Chamber survey found that many businesses in West Mount Vernon reported declining revenue and customer traffic during the project. Some owners told the chamber they had limited financial reserves remaining. Those businesses, however, have not announced closures and are not included in the closure count.
Some Closed Businesses Are Being Replaced
Several former business locations have already found new occupants.
The former Woods Coffee location on Railroad Avenue is expected to become the home of Cafe Hazeltree and Emmaquatics.
The former Welcome Road space is becoming Jackalope Coffee & Lounge.
Sweet Bay Cafe will continue operating in the same building after Red Star closes.
Those changes mean the number of business closures is not the same as the number of permanently vacant commercial properties. A business can close while another operator takes over the space.
A closed storefront does not necessarily mean the business itself has disappeared.
The Closure List Continues to Change
The 2026 list is not necessarily finished.
Several businesses have already announced their final operating dates for late September and October, while other businesses may close without receiving extensive media coverage.
The businesses also do not share one common reason for closing. Some owners are retiring. Others have cited rising expenses, declining traffic, rent increases or personal and family decisions.
For businesses such as Corner Taphouse, the cost of occupying a commercial space has become a central issue. For others, the decision reflects the end of a particular chapter rather than a failure of the business itself.
The result is a changing business landscape across Whatcom and Skagit counties in 2026, with familiar restaurants and retailers leaving locations while other operators prepare to take their places.
Frequently Asked Questions
About the Author
