Back in May of last year, Carole and Michael Middleton sold Party Pieces lock stock and barrel for £180K. They sold their business through an intermediary insolvency firm, which is basically the posh version of a total bankruptcy. The whole picture soon became clear – Party Pieces was mismanaged and overextended, and at the time of its sale, they owed millions to banks, creditors, small vendors and more, and all of the Middletons’ creditors just had to eat those losses. The small businesses who extended credit to the Middletons were left astonished by the scope of the Middletons’ now-collapsed house of cards, especially since many of them were given personal assurances from Carole Middleton. The guy who purchased PP, James Sinclair, later revealed that the Middletons have nowhere near the kind of money they always pretended to have. Well, here’s yet another tragic postscript: the intermediary firm which handled Party Pieces’ bankruptcy and sale isn’t going to get paid either. This is a new level of broke-ass.
The City firm handling the insolvency of the business run by the Princess of Wales’s parents will be unable to collect the total fees due for the project after incurring costs of more than £260,000. Interpath Advisory was appointed to manage the collapse of Carole and Michael Middleton’s Party Pieces business last year after it fell into administration owing creditors £2.6 million.
The firm found that the realisation of Party Pieces’ assets was insufficient to cover the advisers’ time costs of £268,928. Interpath’s team was unable, therefore, to recoup the total fees for the work by its restructuring professionals, who have charged an average hourly rate of £566.
The firm discovered that Party Piece’s insolvency involved longer hours than expected to meet statutory requirements and queries from creditors. Interpath has received fees of £51,437 and, while it is expected to recoup more over time, it has determined that it will not be able to recoup the total bill.
Carole and Michael Middleton launched Party Pieces in 1987 as a business organising children’s parties. Later it branched out into selling decorations and gifts. The company suffered a drop in sales during the pandemic and while the Middletons had been willing to provide a dowry to secure a solvent sale of the business, ultimately it fell into administration.
Party Pieces was sold through a pre-pack administration to James Sinclair, 38, an entrepreneur, for £180,000. Interpath thus had limited funds to draw upon to satisfy creditors, including trade suppliers and HM Revenue & Customs.
Julie Palmer, a partner at Begbies Traynor, a management consulting company, said: “It’s been one of the toughest few years on record for consumer-facing businesses. Many of those that survived the pandemic have taken support loans or depleted their reserves, only to be catapulted into a perfect storm of high cost inflation and supply chain volatility, combined with dwindling consumer discretionary spending as higher interest rates and the cost of living crisis hit hard. Even the best-known brands are not immune to the current malaise and, with many now needing to repay support loans, we expect to see further high-profile casualties succumbing to these pressures, unless the economic environment improves significantly and quickly.”
In previous reporting, this was always fudged: “Interpath Advisory was appointed to manage the collapse…” As in, the sale of Party Pieces was court-ordered (or whatever the British equivalent is) because Party Pieces was so far in debt, the only thing that could be done is appoint Interpath to clean up the Middletons’ mess and arrange for the fire sale of PP’s stock and name. And now the Middletons are too broke to cover Interpath’s incurred costs. Like, I keep going back to that – just how broke are the Middletons and did they really think they could keep up the charade forever?
Photos courtesy of Avalon Red.
Carole Middleton Royal Ascot at Ascot Racecourse – Ladies Day, Day 3 Berkshire, England – 21.06.12,Image: 308735318, License: Rights-managed, Restrictions: , Model Release: no, Credit line: – / Wenn / Avalon 
Michael and Carole Middleton arriving for the christening of Prince Louis, the youngest son of the Duke and Duchess of Cambridge at the Chapel Royal, St James’s Palace, London.,Image: 515593258, License: Rights-managed, Restrictions: NO UK USE FOR SEVEN DAYS – Fee Payable Upon Reproduction – For queries contact Avalon.red – sales@avalon.red London: +44 (0) 20 7421 6000 Los Angeles: +1 (310) 822 0419 Berlin: +49 (0) 30 76 212 251 Madrid: +34 91 533 4289, Model Release: no, Credit line: – / Avalon 
62362, LONDON, UNITED KINGDOM – Tuesday June 7 2011. Matching Middletons! Pippa Middleton and Carole Middleton step out in matching nude shoes! The mother daughter duo were out with Pippa’s father Michael Middleton at Harry’s Bar in Mayfair. ***NORTH AMERICAN USE ONLY*** Photograph: ©Optic Photos, PacificCoastNews.com **FEE MUST BE AGREED PRIOR TO USAGE** **E-TABLET/IPAD & MOBILE PHONE APP PUBLISHING REQUIRES ADDITIONAL FEES** UK OFFICE:+44 131 557 7760/7761 US OFFICE:1 310 261 9676,Image: 525175204, License: Rights-managed, Restrictions: WORLD RIGHTS, DIRECT SALES ONLY UNLESS STATED OTHERWISE IN CAPTION – Fee Payable Upon Reproduction – For queries contact Avalon.red – sales@avalon.red London: +44 (0) 20 7421 6000 Los Angeles: +1 (310) 822 0419 Berlin: +49 (0) 30 76 212 251 Madrid: +34 91 533 4289, Model Release: no, Credit line: Optic Photos / Avalon
160660, Carole and Michael Middleton leave the Sunday church service at The Church of St. Mary Magdalene on the Queens Sandringham estate. London, United Kingdom – Sunday, January 8, 2017. UK, FRANCE, AUS, NZ, CHINA, HONG KONG, TAIWAN, SPAIN & ITALY OUT Photograph: © i-Images, PacificCoastNews. Los Angeles Office (PCN): +1 310.822.0419 UK Office (Photoshot): +44 (0) 20 7421 6000 sales@pacificcoastnews.com FEE MUST BE AGREED PRIOR TO USAGE,Image: 532796854, License: Rights-managed, Restrictions: WORLD RIGHTS, DIRECT SALES ONLY UNLESS STATED OTHERWISE IN CAPTION – Fee Payable Upon Reproduction – For queries contact Avalon.red – sales@avalon.red London: +44 (0) 20 7421 6000 Los Angeles: +1 (310) 822 0419 Berlin: +49 (0) 30 76 212 251 Madrid: +34 91 533 4289, Model Release: no, Credit line: i-Images, PacificCoastNews / Avalon 
Carole Middleton The State Funeral of Her Majesty The Queen, Service, West Door, Westminster Abbey, London, UK – 19 Sep 2022,Image: 724158170, License: Rights-managed, Restrictions: , Model Release: no, Credit line: James Veysey/Shutterstock / Avalon 
Carole and Michael Middleton arriving for the ‘Together at Christmas’ Carol Service at Westminster Abbey in London. The service will be broadcast on ITV1 on Christmas Eve as part of a Royal Carols: Together At Christmas programme, narrated by Catherine Zeta Jones and featuring an introduction by Kate and tributes to Queen Elizabeth II.,Image: 744946541, License: Rights-managed, Restrictions: , Model Release: no, Credit line: Kirsty O’Connor / Avalon
Carole Middleton arriving at Westminster Abbey, central London, ahead of the coronation ceremony of King Charles III and Queen Camilla.,Image: 774175184, License: Rights-managed, Restrictions: -, Model Release: no, Credit line: Andrew Milligan / Avalon 
Carole Middleton, Michael Middleton, Pippa Middleton and James Middleton at the Coronation of King Charles III at Westminster Abbey in London, United Kingdom, on 06 May 2023.,Image: 774203418, License: Rights-managed, Restrictions: , Model Release: no, Credit line: James Veysey/Shutterstock / AvalonncG1vNJzZmivp6x7pLHLnpmirJOdxm%2BvzqZmcW5laH50e9OhnJilmZmxrbHTqKWsl5GnsqDAzqiWm6qfoLKgwM6Yp5qxj6m1pqvIp6qopKaau6TFvp%2Bgq6WPrLWqr8eYqqiklJS9or7TspapoZWYsrR7