Ian Somerhalder reveals he and Nikki Reed sold everything to escape eight-figure debt after fraud

Key facts

• Ian Somerhalder retired from acting seven years ago.
• He and wife Nikki Reed faced an eight-figure debt (at least $10 million) after a business deal involving fraud.
• Somerhalder made personal guarantees to a bank for an unnamed clean-energy company.
• The couple sold houses, paintings, cars, and watches to repay the debt.
• Reed negotiated the exit from the deal and assembled a team to help.
• Somerhalder co-founded Brother's Bond Bourbon with Paul Wesley and the Absorption Company with Reed.
• He has an 8-year-old daughter and a 2-year-old son with Reed.
• Somerhalder's acting career included 'Lost' and 'The Vampire Diaries'.

A Financial Collapse After a Lucrative Career

Ian Somerhalder, best known for playing Damon Salvatore on The CW's "The Vampire Diaries," has revealed that he and his wife, Nikki Reed, were plunged into an eight-figure debt after a business venture went sour. In an interview with E! News at the Beverage Forum in Manhattan Beach, California, on April 28, the 47-year-old actor said he retired from acting seven years ago, walking away from an "insanely lucrative" television career. The financial upheaval stemmed from building a business he "didn't build properly" and fraud that left him and Reed in a hole of at least $10 million. Somerhalder explained that he had made eight figures worth of personal guarantees to a bank for an unnamed clean-energy company. When the business failed, the debt fell on him personally. "It all came crashing down," he said. The actor, who also starred as Boone Carlyle on ABC's "Lost," had been earning top-tier income from one of the biggest TV shows in the world, but instead of retiring comfortably, he found himself starting companies that might never pay him.

Selling Everything to Survive

To escape the debt, Somerhalder and Reed sold nearly all their possessions. "We sold houses, paintings, cars, watches, everything," he said. The couple liquidated assets to raise cash, with Reed taking the lead in negotiating a way out of the deal. Somerhalder credited his wife of 11 years with assembling a team and getting them to the negotiating table. In a 2021 Instagram post, he wrote that Reed "pulled up her bootstraps and got down in the trenches" and that she "devoted her life to getting me out of that mess and it almost killed her along the way." "Eight figures is a hard hole to climb out of," Somerhalder said. "But Nikki and I did it." He noted that Reed's efforts were crucial, as she negotiated the terms that allowed them to repay the debt and regain financial stability. The couple has two children: an 8-year-old daughter, Bodhi, and a 2-year-old son.

The Decision to Leave Acting

Somerhalder's retirement from acting came after his Netflix series "V Wars" was canceled in 2020. He later told People magazine that his Hollywood career is "in the rearview mirror." Reflecting on the decision, he said he sat with his management and acknowledged that acting was the only thing that had sustained his family, yet he chose to walk away at a peak moment. "I would much rather do this than go spend two months in some city, shooting a TV show away from my family," he explained. He added that once you reach a certain level, priorities shift: "I want to focus on family and the future of farming and food and energy and the big things. I don't need to chase awards and anything that would make me feel better about myself." Somerhalder's departure from acting was a deliberate choice to prioritize his personal life and new business ventures over the demands of a TV career.

New Business Ventures and Lessons Learned

Since leaving acting, Somerhalder has co-founded several businesses, including Brother's Bond Bourbon with his former "Vampire Diaries" co-star Paul Wesley. More recently, he and Reed co-founded the Absorption Company, a brand of nutritional supplements that the actor describes as having "proprietary game-changing technology." These ventures represent a shift from his earlier, ill-fated clean-energy investment. Somerhalder has also taken up a new hobby: learning to fly a plane. He said the experience taught him a valuable lesson: "You plan as much for when things don't go right as then they do." His advice for anyone starting a business with a spouse is to "make it fun" and "find the beauty in all of it." The actor's journey from financial ruin to new enterprises underscores his determination to rebuild, but the shadow of the past debt remains a cautionary tale.

A Cautionary Tale of Celebrity Entrepreneurship

Somerhalder's story highlights the risks that even wealthy celebrities face when venturing into business. Despite earning millions from "The Vampire Diaries" and other roles, he found himself in a position where he had to sell personal assets to cover debts. The fraud he cited—though not detailed—serves as a reminder that personal guarantees can expose individuals to unlimited liability. His experience contrasts sharply with the image of a star retiring comfortably on TV residuals. For Somerhalder, the ordeal has reshaped his approach to business. He now emphasizes the importance of planning for failure and maintaining a sense of fun. The actor's openness about the financial crisis may resonate with other entrepreneurs who have faced similar setbacks. As he continues to build new companies, the lessons from his past are never far from mind.

The bottom line

• Ian Somerhalder and Nikki Reed sold houses, cars, and other assets to repay an eight-figure debt caused by fraud in a clean-energy business.
• Reed played a central role in negotiating the debt resolution, a process Somerhalder said nearly destroyed her.
• Somerhalder retired from acting at the peak of his career to focus on family and new business ventures.
• He now co-owns Brother's Bond Bourbon and the Absorption Company, a supplements brand.
• The actor advises entrepreneurs to plan for failure and keep business fun, especially when working with a spouse.
• His financial collapse underscores the risks of personal guarantees in business deals.