Electric van maker Modec enters administration

ELECTRIC van maker Modec, based in Coventry, has gone into administration.

TheBusinessDesk.com revealed last month how the market-leading maker of electric powered commercial vehicles was struggling with cash flow problems and liabilities of almost £29m.

Now, partners at the Birmingham office of recovery specialist Zolfo Cooper have been appointed administrators of the company.

Modec is based  in Coventry and employs 53 staff, 26 of whom were made redundant today.

The joint administrators said they would continue to trade the business as they find a buyer for the business as a going concern.

In a statement, Zolfo Cooper said: “However, in order to continue trading and protect the value of the business for potential buyers, the joint administrators have been left with no alternative but to make 26 employees redundant. The remaining 27 employees will continue as normal in their roles at the company.

Zolfo Cooper  partners Ryan Grant, Simon Appell and Anne O’Keefe, are the joint.

Mr Grant said: “Unfortunately, the business has experienced severe cash flow difficulties in recent times. This, combined with the tough economic climate has led to the need for administration.

“We regret that we were left with no choice but to make some employees redundant in order to protect the value of this business for potential buyers. We would like to take this opportunity to thank every staff member for their professionalism and dedication during what has been an intensely difficult period.”

“At present, we are examining all possible options for the future of the business. Modec is a market leader in its field and as such it represents an attractive purchase for the right buyer. We would welcome expressions of interest from potential buyers.”