The company has rotted to the point of being beyond repair.
Tips
history
From 《论语·公冶长》. Confucius saw his student 宰予 Zai Yu sleeping during the day and said: 朽木不可雕也,粪土之墙不可杇也 — 'rotten wood can't be carved; a wall of dung-plaster can't be whitewashed.' A rare outburst of scorn from the Master.
usage
Often extended to 朽木不可雕也 with the classical particle 也, or combined with 粪土之墙不可杇. Modern usage is almost always a harsh dismissal of someone's potential.