Tom Sandoval and Tom Schwartz were best friends on "Vanderpump Rules," and viewers watched them celebrate many highs in each other's lives, including opening their shared bar, "Schwartz & Sandy's."
However, due to financial challenges, things shifted between Sandoval and Schwartz after they closed the bar's doors for good in December 2024.
In a new interview, a source close to Tom Schwartz and Sandoval discussed where the pair stands today and revealed that things haven't been going well. In fact, the source asserted that their failed business actually "ruined" their friendship.
Tom Schwartz Reportedly Vows 'Never' To Go Into Business With Tom Sandoval Again After Bar Closure
After joining forces with Lisa Vanderpump to open their first bar, "TomTom," Schwartz and Sandoval ventured out on their own to open their second establishment, "Schwartz & Sandy's."
However, some time after opening, their bar's traffic declined, reportedly due to factors including the COVID-19 pandemic and Sandoval's salacious affair with Raquel Leviss, dubbed "Scandoval."
"Unfortunately, the current climate for this business is pretty rough," Schwartz told PEOPLE in 2024. "Recovering from all the negativity post-scandal wasn't easy, and the slimmer margins post-COVID made it even harder to bounce back. There's not a lot of room for error in the restaurant/bar business."
"It's already a tough business, and the damage from relentless negative press over the last year made it even harder," he added. "It was difficult not to feel resentful and bitter, but eventually, we had to let it go — no more replaying what went wrong."
Now that Schwartz has had time to reflect on what went wrong, a source told The US Sun that the reality star has been very "vocal" about "never" going into business with Sandoval again.
The source added that "Schwartz and Sandy's closing ruined their friendship," before stating it "put a severe fracture in their relationship that they have partially recovered from, but I don't think they fully ever will."
Schwartz Is Financially Recovering From The Loss Of The Bar
According to the source, the "financial ruin" strained their relationship and led to many "nasty fights" and disagreements over what was best for the business.
"At the end of the day, there's still love, but the trust they had before has been broken between them," the insider shared.
They also added that Schwartz, 42, is still "financially recovering" from the bar's closure and losing "Vanderpump Rules" hasn't helped him, either.
Schwartz Says They'll Always Be Family
Despite these challenges, Schwartz has previously stated that he and Sandoval will always be like family, considering their years-long friendship.
"He's family for me," the 42-year-old said. "I will always love Tom Sandoval, but of course, I have some deep-rooted frustrations still. But not holding onto that sh-t."
"I'm at least proud to say that I can walk away knowing that I put everything I had into that place," he noted. "Almost all of my money. Lord knows I over-leveraged myself. I feel like we really never were fully accepted or embraced by the neighborhood, but I'm f-cking proud of that place."
Tom Schwartz Is At Peace With The Loss Of His Bar
Schwartz also said that now that his bar is closed, he's found a new "sense of peace" that was unfamiliar to him before, stating the bar's finances put him in a constant state of "anxiety."
"It was like perpetual, constant anxiety—when you're hemorrhaging money. And you know that this place with your name on the side of the building is not doing as well. Your employees are suffering now. They can't pay their bills. It's just a lot," he said.
However, Schwartz also learned much from the experience and found a new "appreciation for life."
"I just feel like I'm growing in so many ways. I don't know if it shows through my actions, but I can feel it," he said.
Tom Schwartz Took A Break From The 'Vanderpump Rules' Cast And Sandoval
The revelation that Schwartz and Sandoval's bond isn't as strong as it once was likely won't surprise loyal Bravo fans.
In the past, Schwartz told some of his "VPR" co-stars that his friend's affair with Leviss impacted their entire group, prompting him to take a few steps back from Sandoval.
"He made a big mess and left for us to clean up. It's hard for [me] not to be resentful. I'm taking a break from Tom right now. I haven't spoken to him in a while," he shared.
