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Stars Cabaret strip club selling to Spearmint Rhino

Embattled Beaverton location facing legal challenges from two state agencies.

TIMES FILE PHOTO - Stars Cabaret & Steak House for years has staged adult entertainment from its Southwest Lombard Avenue location a block off Farmington Road, but it currently is facing legal challenges from two state agencies because minor girls allegedly were engaged in prostitution and nude dancing. An owner confirmed the Beaverton club is selling to a larger exotic dancing chain, Spearmint Rhino.Another chain of exotic dancing clubs is taking over Stars Cabaret & Steak House, the embattled Beaverton strip club currently fighting off legal actions from two state agencies.

Randy Kaiser, one of the Stars Cabaret owners, on Monday confirmed a report in Willamette Week that the Southwest Lombard Avenue location is being sold to Spearmint Rhino.

In a brief written response to an email seeking comment, Kaiser wrote that the Beaverton club is under a sales contract with Spearmint Rhino, which has a location in East Portland and elsewhere in the United States, United Kingdom and Australia.

"We are NOT selling any other property," Kaiser wrote, answering a question about whether other Stars Cabaret locations also are being sold. Stars also has clubs in Tualatin, Salem and Bend.

The Oregon Bureau of Labor and Industries (BOLI) in April announced a minimum $8 million complaint against Stars. Labor Commissioner Brad Avakian, also a Beaverton resident, is seeking at least $4 million per victim for allegedly violating the civil rights of 13- and 15-year-old girls though unlawful sexual harassment. That case is scheduled to be heard later this summer.

The youngest minor was compelled into prostitution at the club, according to the findings in a criminal case that landed both a former Stars Cabaret manager and another man in prison.

The 15-year-old worked as a nude dancer at the club in 2014 even after arrests had been made in the prostitution case, according to an April news release from Avakian's agency.

"With regard to BOLI, that is not the motivation" for selling the Beaverton club, Kaiser wrote without elaboration.

Kaiser didn't respond to whether the sale was related to a separate action by the Oregon Liquor Control Commission, which is trying to cancel Stars Cabaret's liquor license based on the same allegations.

The OLCC case is scheduled for a closed hearing in late May, with those findings later going to the commission for consideration.

Separately, the city of Beaverton entered into a novel agreement with Stars Cabaret, through which the club's management consented to regular inspections and a long list of other conditions aimed at keeping children from working in the adult-only club.

Kaiser directed further questions to his attorney, Courtney Angeli. She has not yet responded to a message left at her Portland office, but this story will be updated if new information becomes available.

By Eric Apalategui
Beaverton Reporter
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