The Telegraph reported Tuesday that Middleton's parents, Carole and Michael, put up the money for the band overdraft, though the young entrepreneur has no intention of closing shop.
""It is not uncommon for start-up companies to make a loss in the early stages of development and it is not something I am concerned about right now," Middleton told the Telegraph. "On the contrary I am very excited as after running a pilot over 2012, Nice Cakes will be officially launching later this year with a brand new website and range of products which I am very excited about."
Middleton dropped out of the University of Edinburgh to start his cake business. He also runs "The Cake Kit Company."
Middleton's sister, Pippa, published a party-planning book in October -- called "Celebrate: A Year of British Festivities For Families and Friends" -- that was poorly received and sold few copies.