IT is probably not the happy ending that Wrapit founder Pepita Diamand dreamt of, but her online wedding-gift company is to be put into administration tomorrow.

KPMG will be appointed as administrator after the collapse of talks to save the firm, which employs 100 people and has 15 showrooms nationwide dealing with 3,000 wedding lists a year.

Sources close to Wrapit said that “most people” who bought gifts on the site that have not yet been delivered should be refunded by their credit-card providers.

Founded in 2000 by Canadian-born former fashion journalist Diamand, the firm blamed the credit crunch and retail-market problems for its woes. It sent a letter to customers recently claiming HSBC had “withheld £1m of our money”, leaving it in a cash crisis. However, accounts show the company has made a loss for the past six years.

Diamand, who recently returned from a holiday in Sardinia, could not be reached. HSBC and KPMG declined to comment.

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