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Contract goes bad - causes Decom to review operations

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Cheshire-based computer hardware recycler Decom is set to close after confirming that it had suspended day-to-day trading. Simon Greer, one of the founders of the 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 said more information would be made public at a creditors' meeting to be held on either 10th or 11th February but failed to give further details. Around 20 or so people worked for the Altrincham-based company providing recycling and distribution of ex-corporate IT hardware. Mark Lee, sales director at Decom 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 market for recycled IT products in the UK is highly competitive and companies are being squeezed by low margins and the low cost of recycled component parts. "Decom was a player in the recycling arena and they had some big clients including Midland Bank," said Jon Godfrey, commercial director at rival recycler Technical Asset Management. "When a company fails it is always sad and this is definitely a blow to the UK recycling market," he said. Around five million PCs are chucked away each year in the UK and around 400,000 tonnes of IT waste is discarded. ®

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