Kate Middleton’s mother Carole faces another setback after her family business went bankrupt.

The firm managing the bankruptcy of Carroll’s businesses admitted it would not be able to pay the full bill.

Party Pieces, owned by Carole and Michael Middleton, went into administration last year, leaving creditors with debts of £2.6m. Interpath Advisory was appointed to oversee the company’s collapse.

The firm found that Party Pieces’ assets could not cover the £268,928 in time costs incurred by the consultants.

The Times report suggests Interpath’s team was unable to recoup the full cost of the work because it took longer to meet statutory requirements while Party Pieces was in bankruptcy.

Party Pieces was founded by Carole and Michael in 1987 as a business specializing in children’s parties, later expanding its range to include decorations and gifts. Like many small businesses, Party Pieces experienced a drop in sales during the COVID-19 pandemic, which ultimately led to its bankruptcy.

The company was eventually sold to entrepreneur James Sinclair for £180,000. Carole, 69, stepped down from day-to-day operations of Party Pieces in 2019 to become a brand ambassador while a new management team took over. However, when the company sought a rescue deal in the spring of 2023, she returned to help run the company.

Carol and Michael live in Bucklebury, a 40-minute drive from the Adelaide Cottage home of the Prince and Princess of Wales.

The couple are considered hands-on grandparents to Prince George, 10, Princess Charlotte, 8, and Prince Louis, 5.

Their daughter Pippa has three other grandchildren, Arthur, Grace and Rose Matthews.

In addition, Carol and Michael’s son James has a son, Inigo Middleton, with his wife, Alizee Twinette.

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