Fears mount over Wrapit's future

Fears mount over Wrapit's future

Fears were mounting over the future of wedding gift service Wrapit as the firm confirmed it was in talks to avoid administration.

Wrapit said it was in discussions with banks and advisers over a rescue deal after suffering financial difficulties since the end of last year.

Customers of the online wedding present firm, which handles around 2,500 to 3,500 wedding lists a year, have already faced big delays in receiving their gifts as the firm has struggled to re-finance.

Wrapit sought to reassure worried brides and grooms that it was doing all it could to avoid going bust and expects to give an update.

Sarah Fawkner, head of marketing for Wrapit, said: "We are doing our utmost. We do not want to go into administration and want to come to a solution to secure the business and then we can fulfil our customers with their gifts."

The firm blamed the credit crunch and problems in the retail market for its troubles and said a couple of previous deals with investors fell through at the last minute, adding to its woes. Some newlyweds claim to have been waiting for as long as six months for their gifts.

Alex Black and his wife told the BBC that their guests ordered £2,000-worth of gifts from Wrapit, but said that they have received only around £400-worth of presents since their wedding in April.

"We closed our list on April 19 and we were promised that within eight to 12 weeks our entire gift list would actually be fulfilled," Mr Black told the BBC. "We're tremendously concerned because the insurance possibly won't cover this."

Wrapit was co-founded by former fashion journalist Pepita Diamand in 2000 to allow couples to compile their lists, with guests able to buy items online through the website. Wrapit buys and delivers the items, with an aim to deliver them within eight to 12 weeks.

The group claims on its website that guest money is "always safe" when paid by credit card, with any undelivered gifts covered for refund by the card provider under the Consumer Credit Act. But those who pay by debit card are not thought to have the same level of protection.