Midtown institution Gallagher's Steak House will sear its last sirloin in January, according to Crain's. The 85-year-old restaurant cited economic difficulties as reason for the shuttering in a notice filed at the Department of Labor yesterday. At this time, all 92 of the restaurant's employees are expected to be laid off.

Recent Yelp reviews indicate quality may have been on the decline in recent years, saying the "old school" service was excellent but the food and decor left something to be desired. "Floor to ceiling, bar to grill, Gallagher's Steak House needs an entire makeover," said one review. "I've dry aged Select rib roasts in my fridge for a week with better results than what they claim is a Prime cut aging for 21 days.  I don't understand... the roasts looked so good in the window," laments another, referring to the large meat case up front where patrons can choose specific cuts of meat for their meals.

As another explanation for the closing: restaurant consultant Arlene Speigel indicated to Crain's that "the field is getting crowded" with other name steakhouses operating nearby and storied Delmonico's restaurant opening a new location next month on West 36th Street. At this time, no statements have been made regarding Gallagher's other locations in Newark, Atlantic City or Las Vegas.

Update: Gothamist just received this statement from Gallagher's Steak House ownership:

“Gallagher’s Steak House is presently in negotiations with a serious potential buyer, Dean Poll, owner and operator of Central Park Boat House. However, in the event that these negotiations were to fall through, we are required by the Department of Labor to inform employees 90 days in advance of the restaurant’s closing in January.”