Kate Walsh
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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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I was a very satisfied customer of Wrapit last year, and our presents were delivered in a satisfactory timeframe. The reason that Wrapit obviously cannot update their website is that KPMG have taken over as administrators, and none of the Wrapit staff are able or allowed to communicate with anyone!
Miranda, Singapore, Singapore
I don't really understand why any of this is embarrassing? It's not the couple's fault, so what's the big deal with calling your friends and telling them sorry, but the company went bust and if you want your money back this is what you have to do! Why is that embarrassing?
Franziska, Sevenoaks,
This is incredibly upsetting and I have hundreds of people to contact and explain that unfortunately we do not have 1 single wedding present. Don't get the wrong idea, it isn't about the presents but the fact that my guests are financing incompetence!
Felix, London,
It is somewhat typical of the whole debacle that Wrapit, who promised to keep all customers (now creditors) updated the moment anything changed, have not changed their websites news bulletin or emailed us informing us of this news. Perhaps it was because it was a Saturday, working weekends? No way..
James, London, UK
I cannot believe this. I had a stressful enough time arranging the wedding, now I have to go through the embarrassment of contacting friends and family and asking them to try to reclaim their money; 50% of our guests are non-uk residents - any ideas how this applies to goods purchased from abroad?
Gina, London, UK
The Consumer Credit Act only protects those who have spent more than £100 on a credit card - not cheque, debit card or even Amex. Anyone who has spent the last 6 months trying in vain to contact Wrapit for a delivery date, like I have, will know that order fulfilment was only ever an after thought.
Brian, Sutton Coldfield,
Well thats that then, we are holding on to the possibility that John Lewis or one of the other wedding list providers will take up the mantle and buy out Wrapit.
Just imagine how many new loyal customers there are from 3500 wedding lists per annum.
I can dream!!!
Adrian, Stevenage, Hertfordshire
Actually JMG of Wareham, you'll be pleased to know the directors can be called to account if they are found to have been "trading insolvent" - ie taking money for new orders when the business was already effectively bankrupt.
Steve, Chorleywood, Herts
It has been such a sad and frustrating week for all of us who have lists at wrapit. Not all guests will be able to claim on their credit cards as not everyone paid in that way - for example an elderly relative of ours who paid by cheque. We can't believe that this has happened to us and our guests.
Joanna Hillier, Brighton, UK
Yes, David, I am sure going to Sardinia on holiday was a valiant attempt "to save things".
Simon, Sao Paulo, Brazil
Wrapit took on new wedding lists and took orders from guests (such as myself) just a few weeks ago, knowing there was every likelihood that the orders could not be filled. I wish the Managing Director could be held personally financially responsible for such corrupt business dealings.
jmg, Wareham, Dorset
Having not received any of our gifts whilst the value of the gifts is not important having to explain the situation to our guests is humiliating. This could have been avoided if wrapit had of admitted the inevitable administration months ago after not being able to fulfil many orders from 2007.
William, Folkestone, UK
It ias always sad when a company goes into administration, thoughts have to be with the directors staff and management im sure they did all they could tio save things.
David, manchester, UK