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Eva Longoria’s Restaurant Is Facing Bankruptcy

by Minority Fortune

Eva Longoria has hit a rough spot in her life. In addition to an impending divorce, she is currently dealing with Besos, her restaurant, going bankrupt. The restaurant served as a steakhouse and a nightclub. Despite earning substantial revenue, the company was experiencing a monthly loss.

E! Online reports :

Beso, a Sin City hotspot partly owned by the Desperate Housewives star, has filed for bankruptcy in order to restructure the upwards of $5.7 million in debt that’s piled up since its grand opening a mere two years ago.…

Longoria’s business, Beso LLC, is seeking Chapter 11 protection in U.S. Bankruptcy Court for assets

totaling $2.5 million after the City Center-based restaurant and its adjoining nightclub, Eve, had trouble keeping up with the lease.

Despite grossing $14.6 million over the past year, court records show Beso racked up some $76,000 a month in losses and owes $1.8 million to landlords Crystals. Not to mention that Longoria’s company owes a bunch of contractors for construction work and some former partners who helped finance the building. A number of those investors have subsequently sued Beso LLC to get their money back.

According to the filing, the 35-year-old thesp owns a 32 percent stake in the business, but is also a creditor, having given Beso a $1 million loan.

Reps for Longoria and the restaurant have declined comment.

Eva was wise to diversify her income with something else. However, her goals might have been too lofty for a first-time restaurant and nightclub business. The restaurant business is difficult. It gets more difficult when you decidedly operate in Las Vegas and build a sizable structure in a field you know little about. The bigger the business, the more due diligence one should perform.

Since the business has been in operation for two years. There should have been professionals on board to help reduce costs and shift focus once the first year’s financials were analyzed. However, it’s important to note that many restaurants experience losses for the first couple of years. So, cash reserves are also very important to keep businesses like these afloat.

Nonetheless, we applaud Eva Longoria for her attempt at entrepreneurship. We hope this doesn’t lead to her giving up, but taking her lessons and trying again.

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