Tom Schwartz and Tom Sandoval’s Bar Schwartz & Sandy's Is Closing: ‘One of the Hardest Decisions’ (Exclusive)

“We agonized over it for quite some time,” Schwartz tells PEOPLE of the ‘Vanderpump Rules’ stars’ plan to shutter the business

Tom Schwartz and Tom Sandoval’s Los Angeles bar Schwartz & Sandy's is closing after two years.

The Vanderpump Rules stars shared the news with PEOPLE exclusively, saying they agreed it was the right choice after navigating both financial challenges and Sandoval’s now-infamous cheating scandal with castmate Rachel Leviss while he was in a relationship with longtime partner Ariana Madix, dubbed "Scandoval."

“Deciding to close was one of the hardest decisions we’ve made,” Schwartz says. “We agonized over it for quite some time because we truly believe it’s a great bar, still ripe with potential.”

“Unfortunately, the current climate for this business is pretty rough,” he adds. “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.”

Related: Tom Schwartz Asked Tom Sandoval to ‘Step Away’ from Their Bar During the Height of Scandoval

Sandoval calls Schwartz & Sandy’s an “amazing learning experience,” saying the plan to close its doors was a decision they “didn’t take lightly” and “made as a team.”

When the bar first opened in November 2022 — four years after the successful launch of TomTom, their joint venture with Lisa Vanderpump — Schwartz says the two friends were “more ambitious and optimistic than ever.”

“We can take you into any corner of the bar and tell you a story about a challenge we overcame — or fixated on for far too long,” he adds. “Tom [Sandoval] and I made a lot of rookie mistakes in the beginning but persevered.”

Then in March 2023, the news of Scandoval broke, prompting backlash toward their eponymous bar.

“It’s already a tough business, and the damage from relentless negative press over the last year made it even harder,” Schwartz says. “It was difficult not to feel resentful and bitter, but eventually, we had to let it go — no more replaying what went wrong.”

Schwartz admits there were moments when he and Sandoval wanted to “throw in the towel” — but the positive feedback he received from patrons each night served as motivation to stay open.

Related: Tom Sandoval Says Traitors Was 'So Intense,' Teases He'll Wear 'A Couple' Kilts (Exclusive)

“In retrospect, maybe we should have closed earlier, but we had so much faith in this bar,” he admits. “Seeing our regulars come in and watching how S&S became a place where people came together to make memories made it hard to let go.”

Schwartz adds that having a namesake business comes with a risk.

“Tom and I learned the hard way about the pitfalls of having your name on the building. It comes with immense responsibility, and your personal life directly reflects on your business and your partners. It’s a double-edged sword for a public figure.”

Some of Schwartz’s favorite memories at the bar include collaborating with their team on the space’s interior design, curating the cocktail menu and setting up tastings with chefs. He calls it a privilege to have the bar serve as a setting for “so many momentous occasions,” including customers’ engagements, promotions, honeymoons and birthdays.

“As someone who came to L.A. with barely a cent to my name, it’s special to know we created jobs and opportunities for people to pursue their dreams,” Schwartz says. “We put our hearts and souls into this place, and I’m leaving knowing I gave it my all.”

He continues, “We had a dream and turned it into a reality. How many people can say they opened a bar in Hollywood? Good for the dad lore someday. Now that I’ve seen behind the curtains, I can tell you it’s not as glamorous as it seems, but it has its moments. An undeniable panache. The skills and knowledge I’ve gained as a bar/restaurant owner are invaluable.”

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Schwartz & Sandy’s isn’t closing its doors just yet.

“We’re excited to finish strong at S&S over the holidays,” says Schwartz, who notes that the bar is still booking events through the end of the year.  “Our world revolved around this place for the last three years—we ate, breathed and slept it.”

Sandoval, who appears on the upcoming third season of The Traitors, says he’s “very optimistic about what the future holds.”

As for Schwartz, he says he plans to “take a beat to recalibrate, then hit the ground running.” He’s currently working on a project with Podcast One called Detox / Retox, launching in 2025.

“I’m super excited about that,” he says. “I’d also like to get behind the camera and produce some shows.”

“I just moved into a new townhome, and for the first time in a while, I feel at home — so cozy,” he adds. “We’ll still be holding things down at TomTom. Maybe I’m a glutton for punishment, but I’d still like to open a little dive bar someday.”