The Oregon Lottery received confirmation today that Shari’s Restaurants, the 24-hour cake and video lottery chain founded in Beaverton in 1978 and known for its distinctive hexagonal stores, has issued its final piece in Oregon.

“All are closed as of today,” said Oregon Lottery spokesman Matt Shelby. “We just learned that.”

Shari’s started the year with 42 locations in Oregon, but after a series of closures, it was down to 17 earlier this week.

The Oregon Lottery is keeping a close eye on Shari’s because the retailer’s video lottery terminals generate significant revenue. (In a previous story about Shari’s troubles, KGW reported that the chain generated more than $34 million in total lottery revenue last year and earned more than $7 million in commissions.)

Each of the Shari branches, like all lottery retailers, deposits the money that players feed into the terminals into a bank account to which the agency has access. Once a week, Shelby says, the agency takes its share of revenue from this shared account.

Earlier this year, Shelby adds, Shari’s account became empty, an indication that the chain was in financial distress. The agency blocked access to gambling for all of Shari’s locations until Shari paid and posted a performance bond. As individual Shari locations across the state have closed this year, Oregon Lottery staff immediately visited the locations to pick up the terminals – up to six per location – and bring them back to Salem, where they will be renovated and sold to new retailers be sent. (Shelby says that when Shari’s was closed for a weekend, records show lottery players simply shifted their business to nearby retailers, so Oregon Lottery doesn’t expect a significant drop in sales from the chain’s demise.)

As rumors of Shari’s closure began circulating on social media on Monday, Oregon Lottery employees reached out to the chain’s back office for information. Around noon, Shelby says, Oregon Lottery Director Mike Wells sent out an email to all employees: Shari’s is ready.

“Shari’s was an Oregon institution and a longtime lottery retailer,” Wells wrote. “I’m sure many of you have memories of late night comfort food, Sunday breakfast or delicious cakes.

“However, Shari’s had problems for years and we supported them in trying to find solutions. Due to the closure of all restaurants, the financial risks of a further partnership are simply too great. I’m not happy about this decision, but it’s the right one for the lottery and the state of Oregon.”

Shelby said agency staff are working to cope with the end of a long relationship.

“We have disabled all of their terminals,” says Shelby, “and we are in the process of terminating their retail contract.”

A Shari spokesman could not immediately be reached for comment, but the lottery provided an email from Samuel Borgese, the founder of Shari’s parent company Gather Holdings, this morning that said: “I can confirm at this time that All Shari locations in Oregon are closed.”