Mohamed Hadid is a well-known fixture on Bravo’s The Real Housewives Of Beverly Hills as the former husband of Yolanda Hadid and a good friend of Lisa Vanderpump. The luxury real estate developer recently filed for bankruptcy in a case ripped from the reality TV headlines. Here, a closer look at what exactly happened to the once multi-millionaire.
This week, news broke that Mohamed’s company would be filing for Chapter 11 bankruptcy, according to numerous outlets. For years, he’s been locked in a legal battle over one property in particular and the sheer size of the house seems to be what has led him into his current situation.
The news came as a shock to some RHOBH viewers, seeing as Mohamed wasn’t afraid to flash his lifestyle on the show. Amid the glitz and glamour, the property developer won viewers over with his close friendship with Lisa and his ability to remain somewhat humble while thirty belly dancers invaded his living room.
The Bankruptcy Decision
The decision to file bankruptcy stems from one property in Los Angeles, a mega-mansion that has been compared to a spaceship. The property sits on a beautiful, hilly landscape, but that setting is exactly what has had neighbours concerned, in part due to the heaviness of the house. Looking at photos of the monstrosity, it’s clear that they have had reason to be alarmed.
Recently, Mohamed was ordered to take down the property but the cost to do so is what has forced the bankruptcy. A cool $5 million, to be exact. He reportedly can’t afford the cost to take down the unsafe structure and filing for bankruptcy is a common strategy for how to deal with such a financially devastating legal judgment.
Mohamed Hadid: A Lack Of Listening
Mohamed has been fighting to build the “Starship Enterprise”, as its been nicknamed — for years. Many outlets have covered his quest to win, and his desire to become the top developer in the city seems to have invaded his ability to make well-informed decisions and this need to prove himself seems to have played a key role in his downfall. Not only have neighbours complained about this property, but a quick Twitter search will tell you that there doesn’t seem to be a single fan of the design out there.
Current Debt And Questionable Financial Records
This story is far from over with this bankruptcy filing, however. While Mohamed is clearly stating that he can’t afford to take down the house, that seems to be up for debate with some allegedly questionable financial records supplied by his defense team. Plus, numerous companies are set to go after the RHOBH guest star as he owes quite a bit of money for various bills, including $386,000 to a design and management company, TMZ reports.
With Mohamed’s decision to file bankruptcy, some introspective work on how he ended up putting aside simple logic and constructive criticism would surely be beneficial. Fellow Bravolebrities and other reality TV stars should be paying close attention and learning from this nightmare, too.
UPDATE: Mohamed Hadid has spoken out about the bankruptcy news in a short interview with TMZ. He wanted to stress that it was one of his companies that has filed for bankruptcy and not himself personally.