The Hampshire-based company, which brought the first Hammel wood recycling system to the UK six years ago (see letsrecycle.com story), appointed a liquidator at a meeting of shareholders in Berkshire last week.
The firm ceased trading in June from its site at Silchester Road in Tadley after sales of recycling and wood chipping equipment “notably declined”.
Colin Wilkie, who is co-owner of Hammel UK, which began trading in May this year, said: “Hammel wasn't happy with the level of service being provided to customers by Wilkie, and pulled the franchise.”
He said directors Jim and Margo Wilkie had decided to retire and wind up the business as a result.
Stolen
A directors' report concerning the liquidation revealed that difficulties had also arisen after Wilkie could not pay Hammel back for a 600,000 piece of plant equipment that was stolen and not covered by insurance.
Hammel terminated the franchise agreement with Wilkie Recycling Systems following unsuccessful negotiations. The directors said that without the support of Hammel they could not continue to trade with industry and local authorities.
The directors' report said: “The company was unable to supply Hammel units to customers and fulfil existing orders. As a result certain business was cancelled.”
But Mr Wilkie said: “This was a voluntary administration because Jim and Margo decided to retire since they were without the franchise.”
Mr Wilkie said Hammel machinery was still available through Hammel (UK) Ltd.
“Rumours”
Wilkie's product range has included shredders for industrial, wood and green waste as well as screening machines for waste, construction and demolition companies and quarries. The company has also offered picking stations, balers, trommels, composting systems and bagging equipment. Brands supplied had included Powerpack, McDonald and Neuenhauser as well as the flagship range from Hammel.
Commenting in their report, the directors of the company said: “This sector of business is highly competitive and as rumours of difficulties spread competitors contacted 'Wilkie' customers direct and sales enquiries notably declined.”
The business is now being liquidated by Peter John Bridger, of Bridges Insolvency Practitioners in Reading. Mr Bridger will help negotiate the sale of the company's assets to pay off the company's creditors and shareholders. He will also conduct a formal investigation into the affairs of the company.
Mr Wilkie said the affairs of Wilkie Recycling Systems was now being wound up.
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