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06/08/2010
Company Directors 'Wrapped' Over Insolvency
The directors of a failed wedding gift company, Wrapit Plc, based in Wandsworth, London, have been disqualified from acting as company directors for a combined total of 15 years following an investigation carried out by The Insolvency Service on behalf of the Government.
Managing Director Peter Gelardi and Retail Director Pepita Diamand were each disqualified for eight years and seven years respectively, following an investigation into their conduct as directors.
Insolvency Service investigators found that between June 2008 and July 2008 Wrapit made a number of false credit card refunds totalling £243,445.
These were processed through the company's merchant card processing facility even though no underlying sales transactions had taken place.
The money was then used to pay staff salaries, certain suppliers of goods and services, and Mr Gelardi and Ms Diamand.
This improper action enabled Wrapit to continue trading, and to continue taking advance payments of at least £872,000 from new customers, at a time when the company was already insolvent.
Mr Gelardi made the decision to make the false refunds and Ms Diamand assisted in implementing the decision.
Wrapit began trading in 2001 to provide an Internet based wedding gift service.
Couples used the company's 'virtual department store' to create gift lists which were purchased by their wedding guests.
Wrapit's accounts show that the company never made a profit and when it collapsed in August 2008 there were 72,000 undelivered wedding gifts for which the company owed over £4 million.
The company entered administration in August 2008 with debts of over £7million.
Commenting on the investigation, Vicky Bagnall, Director of Company Investigations for The Insolvency Service said: "In this sad case thousands of newly-weds have had their big day spoilt following the wrong-doing of Wrapits directors.
"The undertakings signed by Gelardi and Diamand send a clear message to other company directors; if you run a business in a way that is detrimental to either its customers or its creditors you could be investigated by the Insolvency Service and as a result removed from the business environment."
(BMcC/CD)
Managing Director Peter Gelardi and Retail Director Pepita Diamand were each disqualified for eight years and seven years respectively, following an investigation into their conduct as directors.
Insolvency Service investigators found that between June 2008 and July 2008 Wrapit made a number of false credit card refunds totalling £243,445.
These were processed through the company's merchant card processing facility even though no underlying sales transactions had taken place.
The money was then used to pay staff salaries, certain suppliers of goods and services, and Mr Gelardi and Ms Diamand.
This improper action enabled Wrapit to continue trading, and to continue taking advance payments of at least £872,000 from new customers, at a time when the company was already insolvent.
Mr Gelardi made the decision to make the false refunds and Ms Diamand assisted in implementing the decision.
Wrapit began trading in 2001 to provide an Internet based wedding gift service.
Couples used the company's 'virtual department store' to create gift lists which were purchased by their wedding guests.
Wrapit's accounts show that the company never made a profit and when it collapsed in August 2008 there were 72,000 undelivered wedding gifts for which the company owed over £4 million.
The company entered administration in August 2008 with debts of over £7million.
Commenting on the investigation, Vicky Bagnall, Director of Company Investigations for The Insolvency Service said: "In this sad case thousands of newly-weds have had their big day spoilt following the wrong-doing of Wrapits directors.
"The undertakings signed by Gelardi and Diamand send a clear message to other company directors; if you run a business in a way that is detrimental to either its customers or its creditors you could be investigated by the Insolvency Service and as a result removed from the business environment."
(BMcC/CD)
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