I can’t say we didn’t see this coming. Quirky online gift catalog site Red Envelope filed for bankruptcy on April 17, according to an SEC filing. Its assets will be purchased by Creative Catalogs in exchange for $5.7 million and the assumption of debt. Red Envelope is also getting a $4.5 million debtor-in-possession line of credit from Creative Catalogs and Granite Creek FlexCap.

Two weeks ago, Wells Fargo terminated Red Envelope’s last credit lifeline, and it started to lay off employees. This could be an early sign that other e-tailing sites may be hit hard by the economic slowdown. Or it could just mean that Red Envelope was poorly managed. Either way, Red Envelope will not emerge from the deadpool.