Austin Faces Wave of Restaurant Closures Amid Legal and Financial Turmoil

Austin Sees Major Restaurant Closures in September 2024

Austin, Texas, has had a tough month for food lovers as several popular restaurants, bars, and food trucks have suddenly closed their doors. The closures include notable spots such as the downtown cocktail lounge Estelle’s, the restaurant Statesman, and all of Pedroso’s food trucks. Here’s a roundup of what we know so far.

Estelle’s Shuts Down After Legal Issues

The downtown New American cocktail lounge and restaurant, Estelle’s, closed unexpectedly in early September without any prior notice. The lounge was part of a group of businesses owned by NoCo Hospitality. Recent developments surrounding the company have brought to light serious allegations against some of its owners. A former employee from a different NoCo venue, a nightclub named Superstitution, has filed a lawsuit claiming that one of the managing members, as well as an investor, engaged in sexual and physical assault. The lawsuit also alleges that the business failed to pay her required overtime hours in 2023.

As a result of these challenges, NoCo Hospitality faced financial difficulties and has fallen behind on rent payments, leading the company to step away from managing all four of its businesses. Following this decision, Estelle’s, known for its spacious two-floor layout, will be transformed into a private event venue named Tiger Lilly. This new venture is managed by landlord LV Collective and hospitality entrepreneur Matt Wolski, who is also becoming the vice president of hospitality operations for LV. The new venue is set to open in October.

Statesman Restaurant Closes Without Notice

Another notable closure this month was the restaurant Statesman, which said goodbye sometime in late June. Although the restaurant operated for only a few months after its launch in January, it quietly shut down under mysterious circumstances that still haven’t been fully explained. The bar’s associated phone number is no longer working, and the restaurant is marked as “permanently closed” on reservation platforms like OpenTable.

Statesman aimed to bring an American steakhouse experience to its customers, complete with cocktails and a unique Champagne service button. It took over the space that was once Valhalla Esports Lounge, owned by Craig Ley. The lack of communication regarding its closure leaves many fans of the establishment wondering what went wrong.

Pedroso’s Food Trucks Close Shop

Finally, the popular mini-chain of New York-style pizzerias, Pedroso’s, announced that all three of its food trucks are shutting down this month. The trucks located at Round Rock Tavern and Sunny’s Backyard closed as of September 23, while the original truck on Burnet Road at Night Owl is set to close on September 28. The owner, Thiago Vasconcelos, is now shifting his focus to the physical restaurant, which opened inside Brentwood dive bar Lala’s Little Nugget in June.

The closures of these beloved establishments are a loss to the Austin community, which has come to appreciate the diverse culinary scene in the area. As more information surfaces about each of these closures, it’s important for local residents and visitors alike to keep an eye on any new ventures that may emerge. If anyone is aware of additional closures that haven’t been reported, they’re encouraged to reach out to share what they know.

This month has brought an array of challenges to Austin’s local food industry, and it remains to be seen how these changes will affect the dynamic restaurant culture that thrives in the city.