Wrapit’s persistent losses seal the wedding service fate

We reported on the financial problems facing Wrapit in a recent blog article and, unfortunately, the business has now been closed and put in the hands of the receivers…

The statement on the front page of the Wrapit web site is well worth reading - if only as a timely reminder of how many businesses ultimately fail, owing substantial amounts to the unsecured creditors.

In the case of Wrapit, the unsecured creditors (i.e. the people who are very unlikely to see their money again) have an emotional tale to tell. Brides and grooms whose wedding list is now in disarray (August is a busy month for weddings). Guests who have made their wedding gift purchases and now see them stuck in a warehouse in London.

This is not a happy story. A business that never made profits (according to the administrators KPMG); unable to compete against the might of John Lewis and even Amazon.co.uk.

Competitors have been quick to respond to Wrapit’s problems. Type Wrapit into Google and a suite of adverts appear.

“Have you been let down by other Gift companies? We can help.” reads one.

Another reads” FREE no-risk Wedding List - Guest pay directly to your paypal account.”

Which just goes to show that, in business, every cloud has a silver lining…