The Reason behind Tom Schwartz and Tom Sandoval’s Friendship Breakdown on ‘Vanderpump Rules’

However, due to financial challenges, things shifted between Sandoval and Schwartz after they closed the bar’s doors for good in December 2024.

According to a recent interview, a close source to Tom Schwartz and Sandoval shared insights on the current status of their relationship, revealing a downward trend. The source mentioned that their joint business venture not only faltered but also caused significant strain on their friendship.

Initially teaming up with Lisa Vanderpump to launch their first bar, “TomTom,” Schwartz and Sandoval later branched out independently to establish their second bar, “Schwartz & Sandy’s.”

Unfortunately, shortly after its opening, the bar experienced a decline in foot traffic, attributed to various factors such as the impact of the COVID-19 pandemic and rumors surrounding Sandoval’s alleged involvement with Raquel Leviss, known as “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.”

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.

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.”

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.”