Insolvency group Interpath is understood to have written off more than £320,000 in fees it was owed from the administration of Party Pieces, the former business of the Prince of Wales’s in-laws.
Interpath was appointed as administrator in May and over the last 12 months it incurred time costs of £321,716. Time costs are normally charged by administrators to firms whose insolvencies they are handling.
However, creditors’ reports show that the £230,852.99 Interpath was able to raise from selling Party Pieces to Teddy Tastic Bear Co for £60,000, liquidating its stock and other cash-raising actions, was wiped out by legal and other costs.
As a result, Interpath has written off the time costs. It also means creditors, including HM Revenue and Customs, will get nothing back whatsoever.
When it collapsed, Party Pieces owed nearly £613,000 to the taxman in VAT. Its employees were owed £84,690, while trade creditors were owed £456,000 plus. Banks, institutions and other lenders were owed £1.6million. Interpath declined to comment.
Party Pieces, which Carole and Michael Middleton founded in 1987, fell into difficulty during the Covid-19 pandemic. After attempts to sell, refinance and secure investment failed, it collapsed.
