The company, some of whose knives have been used in fatal attacks, will receive £10 per knife.
Taking knives similar to this one out of circulation would "absolutely save lives", according to a senior police officer
"The fact that we have now got them all here and they are going to be destroyed will absolutely save lives."Under the Home Office surrender and compensation scheme Sporting Wholesale could receive more than £350,000 for its knives It added one final shipment of the products was due to be delivered "but no new orders will be placed".
DNA Leisure said that Nibeel had committed "fraud" and the company had used an "age-verified courier" to make the deliveries.
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