Middleton’s West Berkshire-based business Party Pieces goes into administration leaving creditors £2.6m short

A West Berkshire-based party supplier business, founded by the parents of the Princess of Wales, Kate Middleton, has gone into administration.

Party Pieces Holdings collapsed with a shortfall of around £2.6m to suppliers, lenders and the taxman, according to administration filings.

The business began in 1987 when Carole Middleton started to help parents create imaginative parties.

The company was incorporated on September 5, 2019, and a new management team was put in place.

It was based on Yattendon Estate in West Berkshire – which was left £57,480 short as a result.

The hardest hit was Amtrol Alfa – in Portugal – which is out £82,872.

The hardest hit UK-based company, after Yattendon, was Ginger Ray in Surrey, which is owed £52,304 followed by Sultani Gas Ltd, in Kent, which is out by £20,430.

Mrs Middleton remained as the brand ambassador when Party Pieces was incorporated and she and her husband Michael held a majority share in the business.

But trading suffered as the coronavirus pandemic took effect.

In March this year, financial advisory business Interpath was asked to run an accelerated Early Options process to explore the company’s sale and investment options.

Revenue had shrunk from £4.5m in 2021, to £3.2m in 2022, with a net loss before tax of £0.9m.

The report said the firm had an estimated £197,739 worth of assets to return to preferential creditors.

However, Party Pieces was £2.59m short of what it needed to pay off its long list of debts, according to the filings.

The company, which had only 12 employees at the time of its administration, owed £612,685 in tax.

Its debts also included an outstanding debt of £218,749 to Royal Bank of Scotland related to a coronavirus business interruption loan.

Meanwhile, trade creditors – which included Royal Mail, Google and Solihull Moors Football Club – were owed a total of £456,008.