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Tom Schwartz and Tom Sandoval’s Los Angeles bar Schwartz & Sandy's is closing after two years, the 'Vanderpump Rules' stars tell PEOPLE.

Vanderpump Rules stars Tom Sandoval and Tom Schwartz announced on Monday that they are closing their Los Angeles bar, Schwartz & Sandy's, at the end of December after two years of operation. The reality TV stars cited challenging finances and Sandoval's cheating scandal as reasons for the bar's closure in a statement to People.

With a heavy heart, we’ve made the difficult decision to close Schwartz & Sandy’s at the end of December," the reality TV star says.

The Vanderpump Rules stars opened Schwartz & Sandy's Lounge in November 2022, but business was quickly impacted after Sandoval's "Scandoval" cheating bombshell involving VPR costars Ariana Madix and Rachel (née Raquel) Leviss exploded in March 2023.

"There's no easy way to say this but after careful consideration, Greg, Tom, and I made the decision to close Schwartz and Sandy's by the end of the year," Schwartz wrote in an In

Vanderpump Rules stars Tom Sandoval and Tom Schwartz are closing their Franklin Village cocktail bar Schwartz & Sandy’s at the end of December after two years in operation. The duo announced the closure on November 25,

Tom Sandoval's girlfriend made claims about 'Vanderpump Rules' production and Schwartz & Sandy's amid the restaurant closing.