WELLS, Maine — The site of the Maine Diner is slated for the auction block, just four months after the iconic eatery went on the real estate market for $3.3 million.
Remember the Maine Gift Shop, located next door, is also part of the property at 2265 Post Road, for which Keenan Auction Company of Portland will hold a foreclosure auction at 11 a.m. on June 4.
Jim MacNeill and his wife, Karen, have owned the diner and gift shop for the past 8 years. MacNeill began working at the diner 30 years ago, starting as a manager and eventually becoming general manager.
During an interview on May 6, MacNeill expressed confidence that next month’s auction will not be necessary, as he is taking steps to address financial challenges associated with the property.
In the meantime, MacNeill said Maine Diner remains open Thursdays through Saturdays, from 7 a.m. to 8 p.m. He said he is working to increase his staff so that the diner can be open for more hours.
“The intent is to be open Fridays through Tuesdays for dinner,” he said.
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MacNeill noted that while the property and buildings at 2265 Post Road are headed to auction, he still owns the diner’s name. If a buyer wants to keep operating a diner on the site, he said, they will need to purchase the “Maine Diner” name from him.
The diner’s financial challenges began during the aftermath of the COVID-19 pandemic, according to MacNeill.
MacNeill said the diner did not experience financial difficulties during 2020 and 2021, the first two years of the global health crisis, thanks to Paycheck Protection Program funding from the federal government.
When the nationwide workforce shortage hit in 2022, MacNeill said he no longer had enough employees to open for dinner. Revenues fell as a result, and covering expenses became increasingly difficult.
To attract a larger staff, MacNeill purchased Coast Village Inn and Cottages on Route 1 to provide housing for employees. However, MacNeill said revenue challenges persisted at the diner and hotel last summer, as local tourism dipped in response to increased tariffs and strained relations between the United States and Canada.
“The diner couldn’t support both businesses,” MacNeill said. “The diner remains entirely viable, but the inn is not.”
“The hotel provided a solution, but created a new problem,” he added. “I couldn’t sell a room last summer. No one was here.”
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Keenan Auction Company will also try to sell Coast Village Inn and Cottages during a foreclosure auction at 876 Post Road on May 15 at 4 p.m.
The hotel is a 30‑unit lodging complex on 3.4 acres near shops, restaurants, and beaches, according to Keenan Auction Company. In addition to the main inn, guest rooms are spread across two corridor‑style buildings — one two‑story and one single‑story — along with 10 on‑site cottages. Amenities include a swimming pool, on‑site parking, a recreation area, and sun decks.
The site of the inn is where Edmund Littlefield, known as the “Father of Wells,” built his home, sawmill, and gristmill in the early 1640s, according to the Wells Historical Society.
“His establishment of these mills enticed and enabled future settlers to make their homes here,” according to the records at the town Historical Society.
