The upscale steakhouse chain Echo & Rig has abruptly closed two of its locations in California and Nevada, facing accusations from employees of wage theft and unpaid tips. The Sacramento restaurant, which had operated for eight years, has ceased operations, and its Henderson, Nevada, location was padlocked by its landlord for unpaid rent.
The Las Vegas Review-Journal reported that the Henderson location faces licensing issues, with its food service license having expired Jan. 31 and its liquor license set to expire Nov. 30. This comes amid a class-action lawsuit and federal labor investigations into the company's alleged failure to pay workers.
Sam Marvin, the chef and owner, acknowledged that the company owed workers less than $50,000, telling KTNV Channel 13 Las Vegas in late October that the business "does not" have the immediate cash to cover the debts but "will" eventually. Former employees, such as Henderson serving assistant Isaiah Colbert, report being owed between $1,500 and $2,000, with evidence of bounced paychecks.
Marvin attributes the financial difficulties to increased operating costs and rising wholesale meat prices. He stated that as of late October, approximately 81% of employees across the three restaurants had been fully paid.
The original Las Vegas location, which opened in 2013 and includes a butcher shop and charcuterie counter, experienced a temporary closure on Oct. 19, which Marvin attributed to a water issue. While it has since reopened, its operating hours have been significantly reduced, raising further questions about its future viability. This location also faces its own licensing issues, with its food service license expiring Jan. 31 and its liquor license expiring Nov. 30.