Electric van manufacturer Modec is to cease trading after administrator Zolfo Cooper failed in its attempts to find a buyer for the Coventry-based firm.
Last month Modec announced it was to enter administration, making 26 employees redundant, after an acquisition deal with current stakeholder Navistar fell through. Having been unable to find a suitable buyer for the business as a going concern and with its most recent accounts for the year to 31 December 2009 showing a pre-tax loss of £5.9m, a further 25 people will now be made redundant as production ends after four years at the Coventry site.
A statement released by the company says: "Despite the best efforts of the administrators, they have been unable to find a suitable buyer for the business as a going concern. Therefore, the administrators have regrettably been left with no choice but to cease trading and announce the redundancy of the majority of the remaining employees. A small number of employees will stay on at the site in the short-term to assist with winding down operations. However, the administrators have been able to achieve a sale of the remaining assets of the company."
Ryan Grant, one of Modec's three administrators at Zolfo Cooper, says: "Despite rigorously pursuing expressions of interest, we have been unable to find a suitable buyer for the business as a going concern. Regrettably, we have therefore been left with no choice but to cease trading and make the majority of the remaining employees redundant with immediate effect."
