The business owned by Carole and Michael Middleton fell into administration with a shortfall of around £2.6 million owed to suppliers, lenders and in tax.
The company, which was sold to entrepreneur James Sinclair, in a pre-pack administration deal, blamed the pandemic and the cost-of-living crisis for its demise. The brand’s sales fell to £3.2 million last year, from £4.5 million in 2021, with a net loss of £900,000 before tax as a result.
Administrators at Interpath Advisory reported that they were hired to oversee a rescue sale after previous takeover attempts were unsuccessful. The report said Party Pieces had an estimated £197.739 worth of assets to return to preferential creditors.
Party Pieces was, however, £2.59 million short of what it needed to pay its debts, according to the filings. The company, which only had 12 staff at the time of its administration, owed £612,685 in tax. Debts included £218,749 to the Royal Bank of Scotland for a Covid business interruption loan; while creditors including Royal Mail, Google and Solihull Moors Football Club, were owed £456,008.
