Wrapit calls in administrators

04-08-2008

Wrapit calls in administrators
Struggling gift list firm Wrapit has called in the administrators leaving thousands of couples fearing for their wedding presents.

The firm was forced to call in administrators KPMG after failing to find an investor who could keep the business afloat.

KPMG administrator 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."

In an email to its 2,000 customers, Wrapit managing director Peter Geraldi blamed the firm's bank, HSBC, for the collapse.

In the message, Mr Geraldi said: "Since HSBC's decision in May to retain our credit and Visa debit card income, we have fought hard to keep Wrapit in business and find a white knight to provide the necessary funds to enable the company to continue trading and implement its growth strategy.

"There have been several contenders but each one has fallen away in the face of the failure of HSBC to cooperate financially, or even provide an ongoing credit card processing facility."

According to the firm, HSBC has agreed to give Wrapit customers a full refund if they used a Visa debit card or credit card, but those who paid Switch/Maestro card or a cheque will still lose out.

Wrapit added that the cost of actually delivering the gifts ordered would cost HSBC £1 million less than refunding its customers but the bank will not agree to this.

"So, having precipitated the fall of Wrapit, HSBC now have it within their power to minimise the pain caused to 2,000 couples (and, probably, 100,000 of their guests) and ensure that no Wrapit customer loses any money - and, as things stand, they will not take it," Mr Geraldi said.

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