Carole Middleton, Kate Middleton's mother, owns the party supply company Party Pieces.
The idea was inspired by a lack of children's birthday party supplies.
The cost-of-living crisis in the United Kingdom has had a significant impact on the company.
According to one source, the company had a "terrible Christmas," which was exacerbated by postal strikes.
Mrs. Middleton has asked Party Pieces to pay suppliers in 90 days rather than 30.
Mrs Middleton's appeal to the suppliers did not go as planned.
In 2021, Party Pieces Holdings had a net deficit of £1.35 million and a loss of £285,506.
Due to the pandemic and other factors, the company is still experiencing financial difficulties.
The Middletons have not responded to reports of Party Pieces' financial difficulties.