After serving Madison for 15 years, Takara Japanese Restaurant is set to close its branch on State Street this month.

Roy Lanya, State Street branch restaurant manager, said the restaurant ended its lease this year after owners Brian and Erica Ni decided not renew it. 

Lanya said they could no longer afford to keep the establishment running. 

“There’s just too much competition, and the rent is getting expensive,” Lanya said.

In 2014, the restaurant was scrutinized for exploitation and failing to pay overtime wages to immigrant employees. Some employees were not paid minimum wage and one claimed the restaurant owed him $12,000 in wages.

Two years ago, Takara’s owners were said to be working toward resolving the issue after some employees complained, but some employees were still unsatisfied and complained to the Department of Workforce Development.

Takara faces scrutiny for failing to pay workers overtime wages

Takara’s branches on Whitney Way and in Middleton will remain open.