Kate Middleton mother Carole faces another setback following the collapse of her family business.

The firm tasked with managing the insolvency of Carole’s business has admitted it will be unable to cover the full fees.

Last year, Party Pieces, owned by Carole and Michael Middleton, entered administration, leaving creditors £2.6 million in debt. Interpath Advisory was appointed to oversee the company’s collapse.

The firm discovered that £268,928 in time costs incurred by advisers could not be covered by Party Pieces’ assets.

Reports from The Times indicate that Interpath’s team was unable to recover the total fees for their work due to the longer hours required to meet statutory requirements during Party Pieces’ insolvency.

Founded in 1987 by Carole and Michael as a business specializing in children’s parties, Party Pieces later expanded its offerings to include decorations and gifts. Like many small businesses, Party Pieces experienced a decline in sales during the COVID-19 pandemic, ultimately leading to its administration.

The company was eventually sold to entrepreneur James Sinclair for £180,000. Carole, aged 69, stepped back from the day-to-day operations of Party Pieces in 2019, transitioning to a role as brand ambassador while a new management team took over. However, she returned to assist in running the company when it sought a rescue deal in spring 2023.

Carole and Michael reside in Bucklebury, a 40-minute drive from the residence of the Prince and Princess of Wales at Adelaide Cottage.

The couple are thought to be hands-on grandparents with Prince George, 10, Princess Charlotte, eight, and Prince Louis, five.

They also have three other grandchildren through their daughter Pippa, named Arthur, Grace and Rose Matthews.

In addition, Carole and Michael’s son James has a son named Inigo Middleton with his wife, Alizee Thevenet.

Meanwhile their beloved daughter Princess of Wales is receiving cancer treatment and spending time with her family.