Party Pieces, the online party goods supplier founded by the Princess of Wales's parents, is considering handing a six-figure sum to a buyer as part of efforts to offload the business.

Sky News has learnt that a dowry deal is one of the options being considered by Carole and Michael Middleton as they seek new owners for the company they founded in 1987.

Sources said on Monday that a dowry was under discussions with prospective bidders as the Middletons and their advisers at Interpath, the restructuring firm, seek to finalise a deal.

One of the leading contenders to acquire Party Pieces is Club Green, a family-owned business which has also operated for decades in the party goods sector, the sources added.

The Middletons, who conceived the business as they were seeking inspiration for daughter Kate's fifth birthday, were reported to have instructed Interpath to find a buyer last month.

Insiders said there were "multiple parties" interested in acquiring Party Pieces.

The prospective dowry is said to be worth less than £1m.

According to information circulated to potential bidders, Party Pieces has shown "some recent UK performance contraction during international expansion and focus on margins".

The company is reported to have made losses in the last financial year for which accounts have been filed.

One industry source said the Middletons were "trying to do the right thing for the business and its stakeholders".

A spokesperson for Mrs Middleton declined to comment, while Interpath also declined to comment.