UK computer hardware recycler Decom is set to close its doors after confirming on Friday that it had suspended day to day trading.
Simon Greer, one of the founders of the Altrincham, Cheshire based company, said Decom's problems were down to a "bad contract", but refused to disclose any more information because of what he called legal reasons.
He added that more information would be made public at a creditors' meeting to be held on either 10 or 11 February, but failed to give further details. About 20 or so people worked for the company, which recycled and distributed former corporate IT hardware.
Mark Lee, Decom?s sales director, said: "We have suspended day to day operations and appointed accountants to review the affairs of the company. We will issue a press release on Monday. Until then I have nothing else to add."
The UK market for recycled IT products is highly competitive and companies are being squeezed by low margins and the low cost of recycled component parts.
Jon Godfrey, commercial director at rival recycler, Technical Asset Management, said: "Decom was a player in the recycling arena and they had some big clients, including Midland Bank. When a company fails it is always sad, and this is definitely a blow to the UK recycling market."
UK organisations discard five million PCs each year and about 400,000 tonnes of IT waste.
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