Wedding company administrator 'calls for new laws'

News Article - 24 May 2012
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The law needs to be changed to protect customers who pay in advance for goods, KPMG claims.

According to the Telegraph the administrator of Wrapit has called for regulatory reform as attempts to find a buyer for the failed wedding list company look to have failed.

It claims KPMG has written to the directors of Wrapit asking for details of the company's business processes and financial management.

The administrator will feed back its findings to the Department for Business Enterprise and Regulatory Reform.

HSBC, Wrapit's lender, has also come under fire from some people for its conduct during the affair, the Telegraph states.

It claims the bank ring-fenced £1 million of Wrapit's funds when it became apparent the firm was on the point of collapse.

Wrapit has stated that money would otherwise have been used to fulfil its orders.

The wedding company's website states customers who have lost out due to the bankruptcy have no legal redress.

It quotes the Insolvency Act 1986: "No proceedings and no execution or other legal process may be commenced or continued."

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