The company has released a statement today admitting to experiencing financial difficulties at the hands of the credit crisis. Prior to the statement, testimonials on its website demonstrated the concern felt by its customers who had already heard rumours of bankruptcy.

In its statement, Wrapit insists it is not in administration, “However, we have encountered financial difficulty due to the fact that our bankers HSBC have held £1million of our money which would otherwise have been devoted to fulfilling our orders.”

The company announced that it is working with its advisors KMPG in order to resolve the situation, and advised its customers of how to prevent guests from ordering gifts from the company.

The company works by compiling a couple’s wedding list and allowing them to order all the products through Wrapit online, thus alleviating some of the stress. However, in reality it has added stress. Talking to the BBC, one couple who used Wrapit said that guests had ordered goods to the total value of £2,000 in April and as yet they have only received £400 worth of goods.

As it stands, the company has said that its showrooms will be open by appointment only until further notice, leaving thousands of customers in the lurch.

Most wedding insurance providers offer cover for wedding presents, but they may not cover for situations like this where the company has let the couple down. The couple who told the BBC of their losses, also said that they are “tremendously concerned” at the possibility that wedding insurance will not cover their losses through Wrapit.

© Fair Investment Company Ltd