The Princess of Wales' family have been forced to sell their company Party Pieces. Photo / AP

The Princess of Wales’ family has taken a financial hit after they were forced to sell their family business due to looming bankruptcy.

Sky News UK reports that the Middletons’ party goods supplier company Party Pieces has been bought by British entrepreneur James Sinclair, who owns stuffed toy company Teddy Tastic.

Kate Middleton herself worked at the family business in the past. Her parents, Carole and Michael Middleton, started Party Pieces in 1987 after they reportedly couldn’t find the right coloured paper plates for Kate’s fifth birthday.

The Berkshire-based online company then expanded into party decor and gifts, said to be worth around A$56 million ($60m) at the height of its success.

But after the pandemic hit, Party Pieces recorded a loss of nearly A$540,000 in 2021. The Middletons expanded the company into the US last year, with branded shelves appearing in several chemists in New Jersey.

The family had reportedly hoped to avoid insolvency by selling the business and handing over cash to the buyer, but Sky News has reported that it was sold through a pre-pack administration process - meaning the sale had been organised before insolvency practitioners came into the picture.

The sale reportedly did not include all of the company’s liabilities. At the time of the sale, the Middletons owned half of the company with the rest owned by investors.

The Daily Mail teased the upcoming sale last month, reporting that it was due to the family wanting to spend more time with their grandchildren, including Kate’s children George, Charlotte and Louis.

“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,” a family friend told the outlet.

“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 fulltime every day.

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

But it was also reported that Carole had been forced to ask suppliers to give the company a bigger window to pay bills following a “terrible Christmas”.

It’s thanks to Party Pieces’ one-time success that the Middletons’ children, including Kate, were able to go to exclusive British schools.

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