Newlyweds in protest over Wrapit collapse

8:44am Thursday 7th August 2008

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BRIDES who are set to lose thousands of pounds worth of presents after an online marriage gift service went into administration yesterday protested to demand help from HSBC – many in their wedding dresses.

An estimated 100,000 wedding guests must try to reclaim their money for presents ordered through Wrapit, which collapsed earlier this week, and has branches in Darlington, Newcastle and Harrogate.

The online firm, which handles about 2,500 to 3,500 wedding lists a year, appointed administrator KPMG after spending the past few months struggling to refinance.

Customers were informed of the company’s demise after receiving an email from bosses, who blamed HSBC bank for withholding its credit and debit card income.

Peter Gelardi, Wrapit’s managing director, said it would cost HSBC about £4m to refund the 80 per cent of purchases made with a credit card or Visa debit card.

In an email to customers, he wrote: “When big banks change policies, little companies sometimes get squashed.”

He said HSBC accepted it will be responsible for ensuring those who bought gifts using either a credit card or a Visa debit card get a full refund, but the 20 per cent of guests who bought using a Switch/Maestro card or cheque will lose out.

A petition calling for HSBC to facilitate the delivery of Wrapit-organised wedding presents was handed over at the bank’s Canary Wharf headquarters. Eight women dressed in their bridal wear were present.

An HSBC spokeswoman said it was reviewing its options.

She said: “HSBC fully appreciates how Wrapit’s customers feel about this issue and understands their distress and concern that a resolution be found quickly.”