Wedding gifts firm crashes

Aug 5 2008 LDP Business

STRUGGLING wedding gifts service Wrapit has appointed administrators after efforts to rescue the business failed.

The move is likely to mean delays and disappointment for hundreds of couples awaiting gifts from the business.

KPMG partner Jane Moriarty said: “Despite the directors’ best efforts to secure a rescue deal, they were left with no alternative but to cease trading the business with immediate effect and to put it into administration.

“We are seeking a buyer for the business and its assets, albeit for a limited period.”

Wrapit handles around 2,500 to 3,000 wedding lists a year. But the firm fell into financial difficulty at the end of last year, hit by the credit crunch and retail market problems.

Yesterday the company blamed HSBC bank for withholding its credit and debit card income, leaving Wrapit with a cash crisis.

In an email to customers, managing director Peter Gelardi said it would cost HSBC around £4m to refund the 80% of purchases which had been bought with a credit or Visa debit card – although those who bought with cheques, Switch or Maestro cards will lose out.