Family businesses set to lose £450,000 following collapse of Princess of Wales’s parents’ party supplies company earlier this year

• Report reveals small firms supplying balloons and toys not to get money back 
• The taxman, who is owed £613,000 in unpaid VAT, also unlikely to be repaid
• Party Pieces, once worth £30million, collapsed in June with £2.6m in debts 

A string of family businesses will not receive any of the £450,000 they are owed by Party Pieces, the company run by the Princess of Wales’s parents that went bust this year.

A newly-released report reveals how administrators do not expect small firms that supplied balloons, toys and party bags to get any of their money back.

The taxman, who is owed £613,000 in unpaid VAT, is also ‘unlikely’ to be repaid, the report by administrators, Interpath Advisory, reveals.

Party Pieces, which sells decorations and party paraphernalia for children’s events, was founded by Kate’s mother Carole Middleton, 68, and father Michael, 74, in 1987 and was once reported to be worth £30 million. 

But it was hit hard by the pandemic and collapsed into administration in June with £2.6 million in debts.

Administrators warned at the time that unsecured creditors, who are collectively owed more than £2million, are unlikely to receive their money back.

Now another report released last week quashes any hope that suppliers will be repaid. 

It states: ‘Based on current estimates, we do not expect there to be a dividend to unsecured creditors.’

Among those out of pocket are Sultani Gas, a Kent-based company that supplied Party Pieces with helium for its balloons, which was owed £20,430, and party decorations firm Ginger Ray, owed £52,304.

James Sinclair, who bought Party Pieces for £180,000 without its debts, said: ‘Where we can we have retained as many suppliers as possible.’