Severely criticise dreadful film company? (6)

I believe the answer is:

hammer

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'severely criticise' is the definition.
(I've seen this before)

I cannot understand how the rest of the clue works.

(Other definitions for hammer that I've seen before include "Clawed tool?" , "Auctioneer's gavel" , "Thrash; gavel" , "A striking tool for blacksmith" , "Beetle" .)

I've seen this clue in The Telegraph.

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