Pete Wicks had shut down two businesses after they racked up £1million of debt before signing up to Strictly Come Dancing.
The former TOWIE star, 36, will get a bumper boost pay boost by competing in this year's series, which comes after his firms suffered huge financial losses,
Pete shut down his personal company PW Promotions Ltd in February 2023, just weeks after his final appearance on the long-running ITVBe show.
The liquidation report published in March this year revealed the company, which was set up to manage his income, owes a total of £180,426 - and it doesn't have any assets to pay the debt back.
HMRC is owed £85,664 in VAT and £66,702 in corporation tax, while £35,704 is owed to trade creditors, reports The Sun.
Pete Wicks had shut down two businesses after they racked up £1million of debt before signing up to Strictly Come Dancing
Pete also suffered a financial blow with his clothing business, Happy Brands, which he launched with fellow ex TOWIE star Jake Hall during their rise to fame on TOWIE in 2017.
But in December 2022, the reality star and Jake withdrew as directors - a month after the full accounts were published revealing the firm was £796,258 in the red.
Of the huge debt, £591,902 is owed to distributors Lineside Logistics (Southern) LTD, £150,000 to Carter Property & Developments Ltd. Barclays are owed £28,830.
MailOnline has contacted Pete's representatives for comment.
Pete announced he would be joining Strictly on KISS FM on Wednesday morning.
He told the show: 'its a mixture of excited and petrified, generally petrified. I've been telling people, can you really imagine me really doing this and their like, yeah your right you wouldn't.'
'I'm going to have to switch my phone off now I'll have a load of messages.'
He revealed that he had already spilled the news to his best friend Sam Thompson, who 'cried.'
'I'm not joking he screamed jumped up and down and cried.
'He has already planned that he is coming every Saturday and he's making T-shirts and he is my number one fan in life, he is already making T-shirts. He's a bit like Martha in Baby Reindeer.'
The former TOWIE star, 36, will get a bumper boost pay boost by competing in this year's series, which comes after his firms suffered huge financial losses
Pete also suffered a financial blow with his clothing business, Happy Brands, which he launched with fellow ex TOWIE star Jake Hall during their rise to fame on TOWIE in 2017
His signing came as a surprise to some viewers, given his friendship with Zara McDermott and the recent Strictly misconduct probe (pictured with Sam Thompson)
However, sharing the news to Instagram on Wednesday, Zara threw her support behind Pete saying it 'made her so happy'
In a comment, she said: 'This makes me so happy. You’re going to have the best time. I am so proud of you. I cannot wait to see you in some sparkles and maybe even some hot pants'
Pete is close friends with best pal Sam's girlfriend Zara McDermott, who starred on the 2023 series of Strictly.
Pete, 36, signed up for the show after it emerged that the presenter, 27, was physically and verbally abused by her professional dance partner Graziano Di Prima while taking part in the competition last year.
His signing came as a surprise to some viewers, given his friendship with Zara, and her boyfriend Sam Thompson.
However, sharing the news to Instagram on Wednesday, she threw her support behind Pete saying it 'made her so happy.'
Re-posting the official announcement, Zara wrote: 'I've never been so excited. Love you.'
In a comment, she added: 'This makes me so happy. You’re going to have the best time. I am so proud of you. I cannot wait to see you in some sparkles and maybe even some hot pants.'
Sam also shared: 'No words. So proud of you... the content we are going to make that you don't even know about yet.'
