Inside Kim Richards' Embarrassing Downfall: 'She Mismanaged Her Money and Is Wrecking Her Life,' Says Source

Kim Richards Arrest: Ex-Husband Monty Brinson Shocked by Shoplifting
Kim Richards

08/04/2015 AT 06:35 PM EDT

It's been a bumpy year for Kim Richards.

The former star of The Real Housewives of Beverly Hills, who left rehab in June, was arrested on Sunday for allegedly shoplifting close to $600 from Target, and a source close to Richards says her behavior of late has been increasingly bizarre.

"No one understands what she's doing," says the source, who adds that Richards is still not speaking to sister Kyle. "Her family is so concerned. And they're fed up. She's cut herself off from friends and family who care about her."

RELATED VIDEO: Kim Richards Is Reportedly Arrested

The source says Richards, 50, is also lacking a stable living situation, "bouncing around" from her sister Kathy Hilton's home among others. "She moved out of her old place and put her things in storage before she was arrested," explains the source. "She didn't have a chance to find a new place."

As for her financial situation, the source says the mother of four, who was a successful child actress in the 1970s, "mismanaged her money."

Says the source: "She is wrecking her life. But she won't accept any responsibility for it."

Richards' ex-husband Monty Brinson defended Richards Monday, telling Entertainment Tonight: "I am in complete shock. Guaranteed this must be some kind of mistake, and the facts will come out soon."
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