"Kim's children are very disappointed in her," a source tells PEOPLE

By Gabrielle Olya and Aili Nahas
Updated April 18, 2015 03:20 PM
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Kim Richards‘s arrest for public intoxication is hurting the people she loves the most – her four children, Brooke, Whitney, Chad and Kimberly.

“Kim’s children are very disappointed in her,” a source tells PEOPLE. “They’re so upset. This is hard for them.”

According to the Beverly Hills Police Department, the Real Housewives of Beverly Hills star, 50, was arrested at the Polo Lounge at the Beverly Hills Hotel on Thursday morning, and “was displaying symptoms of alcohol intoxication including slurred speech and belligerent insolent behavior cursing at the officers and passively resisted arrest.”

A source confirmed to PEOPLE that she had been drinking at the time, while another said she “has been acting increasingly out of it.”

“Kim is in denial about the whole event,” says a source. “She is telling people she wasn’t even drinking.”

The source also says that Richards went to the Polo Lounge by herself because “she doesn’t have many friends at this point.”

While the reality star maintained that she is sober during the RHOBH, friends who know her well tell a different story.

“She doesn’t think she needs to [go to rehab],” says a source familiar with the situation. “What’s sad is that this isn’t her rock bottom.”

Real Housewives of Beverly Hills’ Kim Richards Arrested