Family company of Princess of Wales sold amid cash struggles

The family firm owned by the Middletons, which was once worth more than $50 million, has been sold on the brink of bankruptcy.

Family company of Princess of Wales Kate Middleton Party Pieces sold after going bankrupt

In a huge blow for the family of the Princess of Wales, the business of Carole and Michael Middleton, Kate’s parents, has been sold after it teetered on the brink of bankruptcy.

According to Sky News UK, Party Pieces was bought on Thursday by British entrepreneur James Sinclair who owns Teddy Tastic, a mail order stuffed toy company.

The princess spent time working at the party goods supplier which was set-up by Carole and Michael in 1987.

The Princess of Wales visits the Anna Freud Centre in London on May 18, 2023. (Photo by Arthur EDWARDS / POOL / AFP)

The couple reportedly created the business when they were looking for colourful paper plates for Kate’s fifth birthday but couldn’t find any. They launched Party Pieces to fill the niche.

The online company, based in Berkshire, west of London, was a success for many years expanding into party decorations and personalised gifts.

At its height it was said to be worth around $56 million.

But the pandemic hobbled the business with Party Pieces recording a loss of almost $540,000 in 2021.

It also spent money expanding into the US market last year with “Party Pieces” branded shelves appearing at around 40 New Jersey chemists sporting images of Ms Middleton with the slogan “Designed with love by Carole Middleton”.

Carole Middleton and Michael Middleton started Party Pieces in 1987. (Photo by Peter Macdiarmid/Getty Images)

It had been thought that the family hoped to avoid insolvency by handing over a cash sum together with the business to a buyer.

But Sky News UK reported that the company was sold through a pre-pack administration process meaning a sale had been organised prior to insolvency practitioners then being appointed to smooth the process.

It’s understood the sale to Mr Sinclair did not include all Party Pieces’ liabilities.

At its sale, the Middletons still owned half the company with other investors the rest. Party Pieces employs around 40 people.

The Party Pieces business expanded into the US in 2002 with Carole Middleton (above) flying to New Jersey to promote the products. Picture: Instagram/Party Pieces/ Liz Mcaulay

The Middletons flagged a sale of the company last month in a piece with theDaily Mail. At the time it was said to be due to the family wanting to spend more time with their grandchildren, including Princes George and Louis and Princess Charlotte.

A friend of the family told the paper that “Carole and Mike are ready to retire, and rather than just shut up shop, they are looking at the options to see whether someone will buy the business.

“Carole has poured her heart and soul into Party Pieces and loves the business, but she’s 68 and is there running things pretty much full-time every day.

“It’s too much of a commitment — she wants more time for family, gardening and travel.”

However, it was also revealed that Ms Middleton had been forced to take a more hands on role in the struggling business with reports she had been asking suppliers to give Party Pieces a longer window to pay its bills after a “terrible Christmas”.

Despite the company’s recent troubles, the business’ one time success helped pay for all three of their children, including Kate, to go to exclusive British schools.

Originally published as Family company of Princess of Wales sold amid cash struggles