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EXCLUSIVE: Wrapit enters administration

Published: 4 August 2008
The beleaguered gift list business has announced that administrators KPMG were called in this morning after a period of uncertainty about the future of the business.
EXCLUSIVE: Wrapit enters administration
Around 2,000 couples and approximately 100,000 guests will be affected said managing director Peter Gelardi. In a statement on the company's website he said breaking the news was "the email I hoped I would never have to write".

He continued: "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. The last one fell away on Friday and therefore, with heavy hearts, but mindful of our responsibilities with regard to wrongful trading, the Board of Wrapit plc set the insolvency wheels in motion."

He confirmed that HSBC will take responsibility for refunding all credit card and visa debit transactions where requested but that those who have paid by switch or Maestro cards, or by cheque, would be "the only people who would lose out," - about 20% of Wrapit's customers.

He also added that the company estimate the cost of delivering all the gifts on order to be around £3m, while the cost of refunding etc is more like £4m. However, according to Mr Gelardi, HSBC have said this is not 'banking practice', an indication that they are "clearly more concerned with doing things correctly than with doing the right thing," he said.


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