Tom Schwartz and Tom Sandoval are serving up a sad update to fans ... their cocktail lounge, Schwartz & Sandy's, is shuttering its doors after 2 years of business.

The "Vanderpump Rules" stars announced the disappointing news on their respective Instagram accounts Monday, confirming the business will be closed for good by the end of the year.

Schwartz, who said he was "sad as hell" by the news, confirmed the decision came after "careful consideration" and that it was "not an easy conclusion." However, the Bravo personality chose to keep things positive in his farewell note, sharing he and Sandoval plan to host a myriad of events in their final days at their bar ... hoping to celebrate everyone who has helped make their dream a reality.

He continued ... "There's some peace in knowing I gave my absolute all into S&S, fully committed with every fiber in my being. To all the patrons who came in and supported us, showed me love every single night I was in there, you kept me going through of the harder times."

His business partner, Sandoval, expressed a similar sentiment with his own note ... though, did noticeably share that "other priorities and commitments have taken hold."

Fans have already issued a number of criticisms in response to the update ... with many voicing concern for Sandoval's mom, who famously gave the reality TV star $250K from her retirement fund as an investment into the business.

During the season 10 reunion, Sandoval confessed he had yet to be able to pay back the loan ... but noted his mom was doing "OK" financially.

Schwartz & Sandy's has been a hot-button topic on 'VPR' for a couple seasons. Not only did the lounge play a role in the dissolution of Schwartz's marriage to Katie Maloney, but the bar was notoriously vandalized and harassed in the aftermath of Sandoval's cheating scandal, known as Scandoval.

After Sandoval's affair with Rachel Leviss was exposed last year, many protested the establishment in support of Ariana Madix -- who T.S. had been with for nearly a decade.