Around 2,000 couples who held wedding lists with the online service could lose their presents.
The eight-year-old company blamed HSBC (which recently announced it has been hit by £5.14bn of problem loans and losses from credit investments) for withholding its credit and debit card income, leaving it with a cash crisis.
In an email to customers, Wrapit’s managing director Peter Gelardi wrote: “HSBC now have it within their power to minimise the pain caused to 2,000 couples (and, probably, 100,000 of their guests) and ensure that no Wrapit customer loses any money. As things stand, they will not take it.”
Diamond’s online wedding service offered more than 30,000 products from 350 brand names. However, the company was perpetually stuck in the red, posting losses of £600,000 in both 2005 and 2006.