Carole Middleton is “deeply upset” by the collapse of her Party Pieces

The Princess of Wales’ mother, Carole Middleton, was “deeply dismayed” at the collapse of her mail order business, a close friend told me.

Yesterday I reported that she was accused of “treason” after Party Pieces went bankrupt and was £2.6million in debt.

“Carole is understandably upset and deeply disappointed by this situation,” the pal says.

“She has really done her best over the past five months to find a buyer who will not only continue the business but also pay off any outstanding debt.

“Carole believes in responsibility and admits it was a little naïve to step back and let someone else run the company she had nurtured for decades and was extremely sad to see the company sold in this way. “

The Princess of Wales’ mother, Carole Middleton, was “deeply dismayed” at the collapse of her mail order business, a close friend told me

Yesterday I reported that she was accused of “treason” after Party Pieces went bankrupt and was £2.6million in debt. Above: Carole with her husband Michael

The friend claims: “The truth is that Carole retired from the business over three years ago and has entrusted the day-to-day operations to a new management team.”

“Unfortunately, business took a turn for the worse, and by the time she realized it, it was just too late.”

However, one of their suppliers told me yesterday that Ms Middleton had personally pledged that Party Pieces’ debt would be repaid in full earlier in the year.

A statement released by the administration earlier this week revealed that Party Pieces owed the Inland Revenue £612,685.

The company also owes RBS Bank £218,749 on a coronavirus business interruption loan, £456,008 to other creditors and £1.4m in unsecured loans.

Party Pieces was sold in part to Teddy Tastic Bear Company Limited for £180,000, the document said, with the company employing 12 people and remaining at its current location in Ashampstead, Berkshire.

The report adds that due to the loss of business, much cash owed will flow out of pocket, saying: “Based on current estimates, it is uncertain whether funds will be available to allow distribution to preferred creditors.”

“It is unlikely that funds will be available to allow a distribution to unsecured creditors.”

The report details how the pandemic has plagued the company, saying sales fell from £4.5m to £3.2m between 2021 and 2022, with the company posting a loss of £900,000.

The friend claims: “The truth is that Carole retired from the business over three years ago and has entrusted the day-to-day operations to a new management team.”

It said, “Management attributed this to the Covid-19 pandemic, which resulted in fewer social gatherings and a decrease in discretionary spending due to the cost of living crisis.” This has placed constraints on the company’s cash flows.’

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

However, according to the report, “The company has faced increasing creditor pressure, including threats to file for liquidation and other legal proceedings.”

Faced with financial challenges, the company approached 175 potential buyers and finally agreed on a £180,000 deal comprising £120,000 of shares and £60,000 for intellectual property, computers, contracts and other equipment.

All 12 employees will transfer to the new company, according to the administrator’s report.