Nerves for online wedding gift retailer

Wrapit, the online wedding gift retailer, is locked in crisis talks to stave off administration that may leave thousands of newlyweds empty handed.

In a statement on its website, Wrapit denied it was already in administration. But it said: "We have encountered a financial difficulty due to the fact that our bankers HSBC have held £1m of our money which would otherwise have been devoted to fulfilling our orders.

"We are working with our advisers, KPMG to resolve this situation over the next few days and will make further announcements in due course."

On its website, Wrapit said that in the meantime its showrooms will open by appointment only until further notice.

The online retailer, which once generated annual sales of £6.3m, is reported to have been trying to refinance since September, but it has failed with three separate investors.

Wrapit, which was founded by the former fashion journalist Pepita Diamand in 2000, helps couples to compile their list and allows their guests to buy the items on its website.

In an automated voice message, the online retailer said it expected to be able to provide an update on its financial situation next week.

Wrapit urged customers not to leave a voice message or to contact their customer service consultant because it could not guarantee it would get back to them.

Instead, it said customers should email: weddinglistenquiries@wrapit.co.uk.