Kate Middleton’s parents became millionaires thanks to the family business, where she worked as a website designer and photographer before marrying William.
Multiple suppliers and UK tax authorities are due £612,685 following the firm’s demise.
When the company went bankrupt last month, it had debts of roughly £2.6 million ($3.2 million), according to a study by insolvency specialists.
The unpaid obligations left by the collapse of the pandemic-hit corporation include almost £600,000 in unpaid tax.
Party Pieces, a celebration paraphernalia mail order business, was built up by Catherine´s parents Carole and Michael Middleton.
The firm grew into a successful business and generated significant wealth for the Middletons, who in 2012 purchased a £4.7-million mansion west of London near the royal family´s Windsor estate.
According to a report, at its height, Party Pieces was said to be worth £44 million.
However, after unpaid suppliers threatened legal action earlier this year, administrators were appointed last month and the business was immediately sold to UK entrepreneur James Sinclair for an undisclosed sum.
Will Wright, of administrators Interparty Advisory, said Party Pieces had been “impacted profoundly by the effects of the pandemic and the ensuing restrictions on social gatherings.”
A report from the administrators said the firm was £2.59 million short of what it needed to clear its debts.