A business run by Kate Middleton’s parents has recorded losses of more than £1million after it was hit by the coronavirus pandemic.
Party Pieces Holdings’ directors, which include the Duchess of Cambridge’s parents Carole and Michael, claimed losses were ‘forecast’ and blamed the shortfall on major restructuring.
It had assets of £175,000 but owed £1.2million to creditors, leaving it with an overall loss of £1.067million, according to its accounts.
The Middletons teamed up with new investors to develop their party business – which they have run since Kate was a young girl.
Despite the pandemic, the directors claim to be ‘wholly optimistic’ about the future of the company.
The directors, who include Kate Middleton’s mother and father Carole and Michael (pictured together) said losses were ‘forecast’ and part of a major restructuring of the business
Its accounts read: ‘The company began trading in September 2019 to expand and develop the existing “Party Pieces” brand. Loan capital investments of £1.2million were made by the directors to finance four key areas.’
Changes included a new website, the creation of own-brand products, selling wholesale and selling in international markets.
But a ‘number of challenges’ surfaced during lockdown, it added, when parties and large gatherings were banned to stem the spread of coronavirus.
‘The company faced a number of challenges during the pandemic and the associated lockdowns in respect of product availability and logistical problems, however was able to trade throughout,’ it said.
The accounts revealed the party company has not been negatively impacted by Britain leaving the European Union.
It said: ‘During the year the company was preparing for the end of the transition period and UK’s exit from the single market.
‘The trade deal that has been agreed has brought new processes in the import and export of goods, however the company has felt no significant impact.’
The first four product ranges in the Party Pieces own-brand collection will be launched this summer, it revealed.
The Duchess of Cambridge’s parent’s company Party Pieces Holdings has recorded losses of more than £1million after revealing accounts for the first time
The report added: ‘The company has invested heavily in new innovative product ranges to create proprietary Party Pieces own brand merchandise.
‘The first four product ranges with over 50 lines are being launched in the summer of 2021 with 2 new ranges to follow in the autumn. It remains a priority of the business to introduce new ranges continually.
‘The losses in the year were forecasted and present the foundations that have been put down to trade successfully into 2021.
‘The directors are wholly optimistic with the future forecast for the business to remain on plan in the year ahead.’
Party Pieces Holdings employed 21 people during the period of the accounts September 5, 2019 to the end of December 2020.