Paloma Clothing Celebrates 50 Years

[May 5, 2025]

From handcrafted imports to neighborhood cornerstone, Hillsdale’s beloved boutique marks a half-century of style and community.

In 1975, Phyllis Roach and her son Mike opened Casa Del Sol, a shop specializing in Mexican handcrafts, in the Hillsdale Shopping Center. Mike, at barely 25, wanted to open up shop in Old Town. Phyllis had her eye on a spot close to home in the Raleigh Hills neighborhood. Hillsdale was the compromise—a place where Phyllis could feel safe closing up on her own in the evening and where Mike saw the foot traffic he knew would be important to their success.

Chris Reid, whose family built the Hillsdale Shopping Center and owned it for over 60 years, recalls, “Grandma Wardin couldn’t understand why Mom would lease to a Mexican import store. But as Casa del Sol—now Paloma Clothing—started making a name for themselves, Grandma quickly saw what a great addition they were to Hillsdale. And so did the rest of the city.”

Kim Osgood and Mike met in Mexico in 1979. By the early 1980s Kim had joined the business, and in 1986 the partnership became official when the two married and Kim bought Phyllis’ share. An artist turned businesswoman, Kim’s keen eye for color and style, along with a couple of name changes for the store along the way, transformed Paloma into the popular shopping destination it is today. Store manager Traci Burnes joined the team in 2010, and alongside Mike and Kim is excited to continue building on decades of success.

Paloma through the years.

Fifty years after its start, Kim and Mike’s partnership has made Paloma Clothing into a local treasure, keeping women looking stylish in sustainable and comfortable fashion. It  has become a mainstay of the Hillsdale business district and consistently garners a spot on Willamette Week’s "Best of Portland” list. It also holds the distinction of being the neighborhood’s oldest business continuously operated by its original owners.

Mike and Kim’s management style emphasizes generosity, loyalty, and care—for both staff and customers. Their approach has created high retention rates among both.

Fresh and relevant merchandise brings women—and those buying gifts for women—through the door. Attentive customer service, generous sales and birthday offers, and handwritten thank you cards keep them coming back.

With fair wages and benefits—and even occasional loans to support education or homeownership—Paloma’s employees tend to stay, often for years, sometimes for decades.

Kim Osgood commissioned a zine to share the story of the people behind Paloma. Stop by the anniversary celebration on May 18 from 2-4 to get yours.

That stability fosters deep customer relationships and has allowed the shop to serve as a launchpad for women entrepreneurs. Mike and Kim's daughter Isabel Osgood-Roach has gone on to create her own line of colorful, sustainable clothing. Two former employees have opened shops in Multnomah Village: Sarah J. Handmade and Switch Shoes and Clothing.

From leadership roles in the business community, to supporting state-wide small business government policy, to picking up trash, Mike and co-owner Kim continue to impact the Hillsdale neighborhood in many ways, both large and small.

In the estimation of Hillsdale News founder Rick Seifert, “Without Mike, Kim and their Paloma “family” and friends, Hillsdale never would have become the thriving commercial and civic center that it is. Over this half century, we have been blessed beyond measure by this little store that has done so much for us.”

Next-door at Hoot-n-Annie, owner Tina Donnaloia says, “Paloma has been an inspiration since the moment I got here,” noting Mike and Kim’s genuine desire to help her, and all aspiring small business owners, to succeed. “Our neighborhood is literally a more beautiful place because of Mike and Kim.”

Longtime Hillsdale resident Linda Doyle agrees. “Mike, Kim, and the team at Paloma have been a stabilizing force in our community,” she said. “They’ve truly been a pillar of Hillsdale’s business scene.”

For many, Paloma serves as the commercial heart of the neighborhood, offering not just consistency but also a sense of place. “They’ve given the Hillsdale Shopping Center structure and longevity—and created a store that feels like family to everyone who walks in the door.”

Their generosity has helped create a sense of community. “If you need donations, they say yes,” Doyle shared. “If you need a space to collect purses for an arts fundraiser, they say yes. Mike and Kim understand the power of generosity and community, and they always show up.”

Doyle, who notes that she has spent countless hours with Mike on committees working to improve Hillsdale and support the surrounding community, points out that their contribution goes beyond the merchandise they sell: “Thank you, Mike and Kim, for the value this special clothing store brings to our neighborhood.”

More Than a Boutique—A Part of Hillsdale’s Evolution

As Paloma grew from a niche import shop into a popular women’s fashion boutique, the neighborhood changed, too.

Rieke Elementary closed in 1984 as the local population aged, then reopened in 1992 as young families returned. Capitol Highway was realigned and upgraded with a new sidewalk and mid-block crossing. Hillsdale welcomed its own farmers market, and plans are now underway for a brand-new high school campus.

The Hillsdale Shopping Center itself, with its 1950s aesthetic, has gone from dated to retro-chic. Paloma Clothing continues to evolve alongside it, bridging the past with fresh ideas to reflect the spirit of the neighborhood it helped shape.

To mark the 50th anniversary, a special zine commissioned by Paloma tells the full story of what Phyllis, Mike, and Kim have built. Stop by the store to get your copy from 2-4pm on Sunday May 18.