Carole Middleton is 'deeply upset' by her Party Pieces collapsing

Carole Middleton is ‘deeply upset’ by her Party Pieces collapsing: Princess of Wales’s mother is ‘disappointed’ and ‘desperately sad’ her company is being sold off after business went bust with £2.6M debts

The Princess of Wales’s mother, Carole Middleton, has been left deeply ‘upset’ by the collapse of her mail-order business, a close friend tells me. 

Yesterday, I reported that she was accused of ‘betrayal’ after Party Pieces went bust, owing £2.6million.

‘Carole is understandably upset and deeply disappointed in this situation,’ the pal says. 

‘Over the past five months she really has done her best to find a buyer, who not only would take the business forward, but would also honour any outstanding debts.

‘Carole believes in accountability and accepts she had been a little naive to step back and trust someone else to run the business she had spent decades nurturing and it’s been desperately sad to see the company sold off in this way.’

The Princess of Wales’s mother, Carole Middleton, has been left deeply ‘upset’ by the collapse of her mail-order business, a close friend tells me 

Yesterday, I reported that she was accused of ‘betrayal’ after Party Pieces went bust, owing £2.6million. Above: Carole with her husband Michael

The friend claims: ‘The truth is Carole had stepped back from the business over three years ago, trusting the day-to-day running to a new management team. 

‘Sadly the business took a turn for the worse and by the time she realised, it was just too late.’

However, one of her suppliers told me yesterday that Mrs Middleton had been giving personal assurances that debts owed by Party Pieces would be repaid in full earlier this year.

A statement published by administrators earlier this week revealed that Party Pieces owes the taxman £612,685.

The company also owes £218,749 to RBS bank for a Coronavirus Business Interruption loan, £456,008 to other creditors and £1.4 million in unsecured loans.

Party Pieces has been sold in part to Teddy Tastic Bear Company Limited for £180,000, the document says, with the firm keeping on 12 employees and remaining at its current base in Ashampstead, Berkshire.

The report adds that many owed cash will be out of pocket as a result of the business failure, saying: ‘Based on current estimates, it is uncertain whether there will be funds available to enable a distribution to preferential creditors. 

‘It is unlikely there will be funds available to enable a distribution to unsecured creditors.’

The report details how the pandemic began to cause the company problems saying that revenue contracted from £4.5 million to £3.2 million between 2021 and 2022, with the company making a loss of £900,000.

The friend claims: ‘The truth is Carole had stepped back from the business over three years ago, trusting the day-to-day running to a new management team’ 

It said: ‘Management attributed this to the Covid 19 pandemic resulting in reduced social gatherings and a reduction in discretionary spend due to the cost of living crisis. This caused constraints on the company’s cash flows.’

In early 2023 the CEO resigned and the Middletons and other members of the board tried to shore up the company and find a buyer.

But the report said: ‘The company experienced increasing creditor pressure, including threats to present winding up petitions and other legal proceedings.’

In the face of the financial challenges the company approached 175 potential buyers and eventually settled on a deal for £180,000 which was for stock worth £120,000 and £60,000 for intellectual property, computers, contracts and other equipment.

All 12 employees will transfer to the new company, the administrator report said.

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