Friday, Nov. 30, 2007

Mallard's closes after all

Facing lawsuit, Modesto restaurant doesn't make it to 2008 as was intended

Mallard's Restaurant in Modesto closed its doors Thursday, while the owners face a criminal investigation and a $1.6 million civil lawsuit in federal court.

The 21-year-old business at 1700 McHenry Ave. closed after lunch, leaving 51 employees out of work and many customers sad to see the end of what formerly was one of the few places for fine dining in the city.

"Before downtown got spruced up, this was the place to have a nice meal," said Bryon Moore, 47.

Now a San Diego resident, Moore said he went to Mallard's regularly when he lived here and still ate there a few times a year.

He and his lunch partner, Barry Hickerson of Modesto, said they were stunned to hear the restaurant was closing.

"Since the first month it opened, it was consistently excellent," said Hickerson, 53. "They had a very committed staff. But it's had its challenges in the last couple of years."

The two men added that the service and food were lacking on their last visit Thursday, when Moore found a bone in his turkey sandwich.

Problems with the bill led a manager to give them their meal for free, they added.

Other issues at Mallard's have come to light in the last few weeks. The San Joaquin County district attorney's office, along with several state agencies, carried out a search warrant last week at Mallard's, seeking information on payroll taxes.

That warrant stemmed from a Stockton Mallard's that closed last month. Employees there said they were unable to collect unemployment benefits.

Both restaurants were owned by the Sang family, who could face criminal charges over the failure to pay payroll taxes.

Richard Sang ran the restaurants with his sons Richie and Brookes Sang. None of them could be reached for comment Thursday.

Modesto employees learned Wednesday that Mallard's would close the next day. Managers initially said they planned to keep the restaurant open through the end of the year.

A Mallard's chef, John Psarras, 37, said he walked off the job Thursday, angry that employees were losing their jobs so close to the holidays.

"It's a dark cloud in there," he said, adding that in the four months he's worked there, every paycheck has bounced. "What am I going to do for Christmas?"

Psarras said he hoped he and other employees would find work at other restaurants soon.

Managers told employees not to cash their final paychecks, but instead to seek payment from the state Employment Development Department, which has been investigating Mallard's.

Collin Montanana, 21, said he was not surprised that the restaurant closed.

"When the checks stopped cashing, the owners were never around, and you stopped getting liquor, you could see it coming," he said.

The closure means the cancellation of at least a dozen holiday parties planned for Mallard's over the next month.

Lynnell Ford and Anita Oseguera, of Modesto salon Creations, said they came by Thursday to check on a brunch for salon employees Sunday.

"We called last week and they said they would be open, but we thought we should check for ourselves," Oseguera said. "The whole mood in there was sad."

Stan Dimond, Mallard's general manager, said the restaurant would refund all deposits for holiday parties.

Dimond, who was part of the staff when Mallard's opened in 1986, said he was sad and disappointed that the restaurant was closing.

"I can say it's really a shame," he said. "This restaurant has not done anything bad. It's unfortunate to see the turn of events that destroyed it."

Dimond said a state agency ordered the business to close, though another employee said the Sangs made the decision.