At a Glance
- Empire Control Room & Garage fired 15 workers, a 20% staff cut, on Dec. 30 after late paychecks
- Owner Stephen Sternschein blames plummeting bar sales and will switch to third-party security
- Former staff cite years of delayed wages, missing festival pay, and unpaid vendor bills
- Why it matters: Austin’s famed Red River venue faces artist boycotts and legal probes as its financial practices unravel
Empire Control Room & Garage, a cornerstone of Austin’s Red River music strip, slashed its workforce by 20% after weeks of late paychecks, igniting public outrage and artist boycotts. Graffiti reading “Fuck u Steve” appeared on the venue’s gate Dec. 30, hours before management dismissed five employees and 10 contractors, according to owner Stephen Sternschein.
Aiden V. Crossfield reported the news via News Of Austin.
Staff Cuts and Public Backlash
Sternschein texted News Of Austin on Dec. 31 that bar sales have “plummeted” and the venue “can’t afford to have [an] in-house security dept.” He claims 30 staff remain and calls the reorganization a survival move, mirroring vendor models used by Stubb’s and ACL Live. Critics say the cuts follow a pattern of payroll delays stretching back years.
Ashley Pickell, a manager until 2023, says late checks happened “multiple times throughout the years.” Audio engineers Ana Hymson and Sydney Wright, who left in May 2025, shared emails and Slack messages showing wages shorted or delayed until staff chased Sternschein for days or weeks.
History of Pay Disputes
- 2022: Manager Amanda Justice led a strike after learning Empire refused SXSW festival pay; she was fired after the festival
- 2023: Employees report cash-box loans and unpaid equipment repair bills
- 2025: New Ticketmaster contract brought a major advance, yet managers say accounts remained unbalanced
Sternschein defends the venue’s record, noting Empire once paid “2x the national average” and insists the Ticketmaster deal “immediately helps us stabilize.” He declined to comment on specific allegations of late wages.
Legal and Financial Pressure
An investor lawsuit filed by Andrew Sernovitz accuses Sternschein of misclassifying workers and mishandling city-backed loans. Court documents show Sternschein sought a restraining order against Sernovitz in July 2025; a judge dismissed it Dec. 5 as “harassing.” Sternschein refiled Dec. 29; the case is ongoing.
Separately, New York executives Ian Fine, Joshua Rowe, and Paul Magyar allege Sternschein commingled corporate funds for personal expenses and created a hostile work environment. He missed two court summons; a warrant could have issued Jan. 13 if he failed to appear.
Tax and Property Issues
Heard Entertainment, Empire’s owning LLC, has not paid 2024 property taxes on the 604 E. Seventh parcel. The city of Austin is owed $103,701.77, though the balance is listed as disputed, postponing collection. Rally Austin, which provided a $2.2 million loan for the Garage purchase, says Empire remains current on loan payments and has received no formal request to transfer the title.
Artist and Booker Exodus
All 12 bands scheduled for Empire’s Jan. 9-10 Free Week shows withdrew or relocated to other Red River venues. Festival organizer Juan-Carlos Silva and Tiny Sounds Collective both claim Empire shorted payments-$700 in Tiny Sounds’ case-and say stories of unpaid talent are common.
Community Fallout
Former managers praise the venue’s staff but condemn the culture. “Empire is a place that does not value their employees,” Wright said. Pickell urges the scene to stop supporting Sternschein financially, lamenting that the beloved space is “smeared” by its ownership.
Key Takeaways
- Empire’s 20% workforce reduction follows years of payroll complaints and recent financial restructuring
- Multiple lawsuits and unpaid taxes compound the venue’s troubles
- Artists and bookers are voting with their feet, pulling shows and warning peers
- Rally Austin and city officials monitor loan compliance as the venue fights to stay open
