Online wedding gift service enters administration

The move means that an estimated 2,000 couples could lose their presents that have aleady been bought through the service.

The company handles up to 3,500 wedding lists every year and has 16 showrooms in the UK.

Last month, Wrapit said the credit crunch had forced it to seek a rescue deal. Wrapit had been seeking financial backers since May, but has been unsuccesful.

In an email sent to customers this morning, Peter Gelardi, Wrapit managing director, said: "There have been several contenders but…the last one fell away on Friday and therefore, with heavy hearts, the board of Wrapit set the insolvency wheels in motion."

Wrapit's bank HSBC has called in KPMG to act as administrator. In his email, Gelardi asked customers to write to HSBC to try to persuade the bank to refund them.