HOULTON, Maine — A July fire that shut down Houlton’s popular Elm Tree Diner was deliberately set, according to state fire investigators.
“We have evidence to support this as an arson,” state fire investigator Paul Mason said Thursday about the ongoing investigation.
There was also a burglary at the time of the fire and items were taken, according to Mason, who said investigators believe the two incidents are related.
In Maine, arson is defined as starting a fire or explosion at either a person’s own property or that of another to collect insurance or recklessly endanger others. It is a Class A felony, carrying a maximum sentence of up to 30 years in prison and a $50,000 fine.
Since the late July fire, rumors have been circulating on social media about the diner’s fate. Just this week, comments about a planned reopening surfaced again on local Facebook group Houlton Talks.
Sparked by the continuing community interest in the diner, a Bangor Daily News investigation revealed not only the ongoing arson investigation, but a long string of health inspection and financial struggles.
The Elm Tree Diner has been part of Aroostook County culture for decades, often drawing repeat out-of-town visitors over the years. Many would travel an hour or more just for a slice of the diner’s famed pie.
But the iconic comfort spot will soon go up for sale, according to the building’s owner.
Rene McGillicuddy, who owns the building at 146 Bangor St., said Wendy and Wayne Shaw, the couple who ran the diner since 2022, owe her $14,000 in back rent.
“Wendy said they were reopening, but they are not,” McGillicuddy said Thursday. “You can’t owe that much rent and just let it go by.”
Multiple attempts to reach the Shaws for comment were unsuccessful.
News accounts in 2022 reported that the Shaws had purchased the diner from McGillicuddy, who at the time believed they were buying it, she said.
“It never changed hands,” she added.
The Littleton couple told her they had the approved financing and asked if they could move in ahead of finalizing the purchase, according to McGillicuddy.
“I said, ‘Sure, go ahead,’” she said.
Still, the Shaws ran the restaurant under an LLC for about three years, garnering a loyal diner following who showed up regularly for breakfast and especially for their popular home-baked goods.
State records show that Wayne and Wendy Shaw held the Elm Tree Diner LLC from Nov, 16, 2022, through Dec. 3, 2025, when the state dissolved the corporation for non-payment of fees.
The Shaws were responsible for everything related to the business, including taxes, health inspections, payroll and insurance, McGillicuddy said.
“The business was not running under me,” she said.
Documents filed with the Aroostook County registry of deeds list multiple local, state and federal tax liens tied to Wendy Shaw and the Elm Tree Diner totaling more than $181,000, including unpaid federal employee tax withholding, state sales tax and local property taxes.
Additionally, the BDN found three 2025 failed state health inspections through the Maine Department of Health, with the last in June a month prior to the fire.
The inspection violations included multiple critical food safety violations related to cleanliness and food storage. Some violations included food not protected from contamination during storage, food packages that weren’t in good condition and didn’t protect the integrity of the contents, and different types of raw animal foods stored in a way that could lead to cross contamination.
According to investigator Mason, the July fire was first discovered outdoors. Firefighters heard a gong inside the diner indicating the sprinkler system was activated inside. A second fire erupted in the kitchen area.
Mason asked anyone with information about the fire or the burglary to call fire investigators at the State Police Houlton Barracks, 207-532-5400, or leave a tip on the Arson Hot Line at 888-870-6162.