Just a month after putting his ailing marshmallow firm, Boomf, into administration, James Middleton has sold it for £300 000 (about R6,3 million).
The company, which sells personalised marshmallows, has been bought by British-Estonian businessman Stepan Galaev (35).
Boomf is reportedly £800 000 (R16,8 million) in debt and while the transaction brings financial relief for James, some creditors will be left unpaid as Galaev hasn't taken on the debts.
“The company has not granted security to any creditor and therefore there are no secured creditors in this matter,” the administration report reads.
James (34), who hasn't publicly commented on the matter, set up the company in 2013.
In December last year, accounts reflected it had accumulated almost £2 million (R42m) in trading losses.
Investors included James Matthews, the husband of James’ younger sister Pippa, greetings card company Moonpig founder Nick Jenkins and former VoucherCodes supremo Duncan Jennings.
There were 28 companies that showed interest in buying Boomf but Otkrytka Limited, established by Galaev, offered the most money and paid immediately.
James, who dropped out of university to start his first party business called the Cake Kit Company, has previously described himself an “ideas” man who struggles “with the minutiae of running a business”.
In contrast his parents, Carole and Michael, run a successful online party business called Party Pieces, which they started in 1987.
It's not all bad news though. It appears James' latest business, Ella & Co, a dog food business, is doing well.
He was recently a recipient of the UK's Pet Industry Federation's Pet Professional of the Year award and Ella & Co was named a finalist for Online Business of the Year 2021.
The business, which he started in 2020, is aimed at the happiness and wellbeing of dogs and concentrates on healthy food, specifically the concept of freeze-dried raw food made from high quality ingredients.
“While we wouldn’t think twice about the little things we do for ourselves – morning coffee, gym memberships, dinners out and spending money at the pub – we can forget about investing in our pets' long-term health and wellbeing,” he explained on his website.
“At Ella & Co, creating the most convenient, nutritionally rich, ethical, and delicious freeze-dried raw dog food available in the UK is our first, small step towards a dog food revolution.”
Sources: dailymail.co.uk, nowtolove.com.au, Instagram.com