Actresses Who Lost Millions in Horrible Business Investments

The glitz and glamour of Hollywood often mask the financial risks that come with high-level earnings and the pressure to diversify wealth. Many actresses have attempted to transition their success from the screen into the world of business, only to find that market volatility and poor advice can lead to devastating consequences. From ill-fated real estate acquisitions to falling victim to high-profile financial fraud, these women have faced public and painful losses of their hard-earned fortunes. These stories highlight the importance of financial literacy and the inherent dangers of investing in ventures outside one’s primary expertise.

Kim Basinger

In 1989, Kim Basinger purchased the small town of Braselton, Georgia, for approximately $20 million with the goal of establishing a tourist landmark and movie studio. This ambitious real estate venture took a turn for the worse when she faced a massive legal judgment for backing out of the film ‘Boxing Helena’ (1993). The combination of the failing town investment and the multi-million dollar lawsuit forced Basinger to file for Chapter 11 bankruptcy in 1993. She was ultimately forced to sell the town for a fraction of her initial investment, reportedly receiving only $1 million. This remains one of the most prominent examples of a celebrity business investment ending in financial ruin.

Debbie Reynolds

Debbie Reynolds invested a significant portion of her life savings into the Debbie Reynolds Hollywood Hotel and Museum in Las Vegas during the 1990s. The property was intended to be a permanent home for her massive collection of Hollywood costumes and props, including items from ‘Singin’ in the Rain’ (1952). However, the business struggled with mismanagement and failed to attract the necessary foot traffic to stay afloat in a competitive market. Reynolds was forced to file for corporate bankruptcy in 1997 to protect the asset, but the hotel was eventually sold to developers. To settle her debts, she had to auction off her cherished memorabilia collection over several years.

Zsa Zsa Gabor

Zsa Zsa Gabor, a staple of classic Hollywood films like ‘Moulin Rouge’ (1952), saw a massive portion of her wealth disappear in the Bernie Madoff Ponzi scheme. Gabor and her husband, Prince Frederic von Anhalt, were among the many high-profile investors who lost millions when Madoff’s fraudulent investment firm collapsed in 2008. The couple reportedly lost an estimated $10 million, which significantly impacted Gabor’s financial security during her later years. To cover their mounting expenses and medical bills, they were forced to list their famous Bel-Air mansion for sale. This financial catastrophe illustrated how even seasoned celebrities could be deceived by seemingly stable business opportunities.

Kyra Sedgwick

Actress Kyra Sedgwick, best known for her award-winning performance in ‘The Closer’ (2005–2012), was another prominent victim of the Madoff financial scandal. Alongside her husband, actor Kevin Bacon, Sedgwick lost a substantial part of her net worth when the Ponzi scheme was finally exposed. While the exact figure was never officially disclosed, reports suggest the couple’s losses reached into the tens of millions. They had entrusted their long-term savings to Madoff’s firm, believing it was a safe harbor for their professional earnings. The loss forced the couple to take on numerous new projects immediately to rebuild their depleted retirement funds.

Sonja Morgan

Sonja Morgan, a cast member on ‘The Real Housewives of New York City’ (2008–2021), faced a $7 million legal judgment following a failed business venture in independent film production. Her company was sued by a production firm after a movie project titled ‘Fast Flash to Bang Time’ failed to secure its lead actor and necessary funding. The court ruled that Morgan was personally liable for the breach of contract, which led her to file for Chapter 11 bankruptcy in 2010. To satisfy the judgment, she was forced to sell off significant assets, including a multi-million dollar property in France. This investment failure became a central storyline in her public life and serves as a warning regarding the volatility of film financing.

Tori Spelling

Tori Spelling, famous for her role in ‘Beverly Hills, 90210’ (1990–2000), has experienced multiple business failures that resulted in millions of dollars in lost potential and actual revenue. She invested heavily in a boutique retail store called ‘InvenTori’ and a bed-and-breakfast venture featured in ‘Tori & Dean: Inn Love’ (2007–2012), neither of which proved to be sustainable. These business losses were compounded by real estate investments that failed to appreciate and high overhead costs. Over time, these poor financial decisions led to multiple lawsuits from credit card companies and significant tax liens from the government. Spelling has often cited a lack of financial education as a primary factor in her business struggles.

Toni Braxton

Toni Braxton, who appeared in films such as ‘Kingdom Come’ (2001), faced massive financial losses due to the self-funding of her live performances. In 2010, she filed for bankruptcy for the second time after her self-financed residency in Las Vegas was abruptly canceled. Because she had personally guaranteed the production costs for the show, she was left responsible for millions of dollars in debt when her health prevented her from performing. This business decision led to the loss of her rights to many of her own hit songs and the liquidation of her assets. Her experience highlights the extreme financial risks performers take when they transition into the role of show producers.

Share your thoughts on which of these business failures was the most unexpected in the comments.