Holiday season at Empire Control Room & Garage turned into anything but a party after management cut loose multiple workers and shifted to outside staffing vendors, a move former employees say came with no warning and some missing paychecks. The fallout has sparked boycott calls on social media just as the Red River venue heads into Free Week, one of East Seventh Street's busiest stretches of the winter.
Holiday staff purge leaves venue scrambling
The situation boiled over during the holidays when management dismissed the club's entire security team along with other employees, according to the Austin Business Journal. Former staffers' posts alleging unpaid wages circulated widely online, and court filings reviewed by the outlet described what it called an operational and governance breakdown inside the business.
Owner says cuts are part of a financial reset
Owner and operator Stephen Sternschein told the Austin American-Statesman that Empire is "reorganizing" and that the club "can't maintain current headcount because bar sales are down and payroll is unsustainable." He framed the shift to outside vendors and staffing providers for shows as a financial necessity rather than a choice about how the venue wants to operate.
City-backed loan was supposed to secure the space
Those shakeups land only months after the city's Rally Austin program put significant money behind the property. In October 2024, the program approved a $2.2 million loan to help Heard Entertainment acquire the Garage parcel next to the Control Room, a deal meant to keep the site functioning as a live-music space for decades, according to Rally Austin. The Austin Chronicle noted at the time that local backers saw the arrangement as a way to keep the venue planted in a volatile real-estate market, while secures the venue's future coverage pointed out that the city-supported purchase was designed to reduce displacement risk.
Unpaid wage claims fuel boycott calls
Former security staff and other employees say they were let go abruptly and that some wages are still outstanding. Those allegations helped fuel a growing chorus of musicians and patrons urging a boycott of Empire on X and local music message boards, according to reporting described by the Austin American-Statesman. The controversy has become another data point in a broader debate about the fragility of mid-sized independent rooms in Austin's core. Sister venue Parish, which shares ownership ties, announced plans to move last year, citing high operating costs and shifting consumer habits, as previously reported by the Austin Chronicle.
Court fight and tax debt cloud the balance sheet
The drama is not limited to staffing. Court records detail a broader governance dispute between Sternschein and former partners, and on Dec. 29, 2025, Sternschein filed a new lawsuit against Andy Sernovits, according to the Austin Business Journal. The same reporting notes that the property's tax account accrued more than $103,000 in Travis County delinquencies over 2024 and 2025, raising fresh questions about Empire's financial footing even with city-backed assistance in place.
Free Week test looms for a shaky institution
Promoters, artists and city cultural officials are watching to see whether boycott pressure dents Free Week turnout or forces last-minute changes to bookings, and whether management can steady the operation while relying more on outside staffing. Observers note that Rally Austin's loan secures the real estate but does not dictate day-to-day staffing decisions. Coverage from Community Impact and other local outlets has repeatedly highlighted just how precarious independent venues remain in downtown's shifting economic landscape.
For now Empire Control Room & Garage is still a central player in the Red River Cultural District calendar, even as ownership disputes, personnel cuts and tax problems play out in court and online. How the club weathers public backlash and creditor pressure is likely to shape the next round of arguments over what, exactly, it means for Austin to protect its music venues in practice and not just in slogan form.
