Modec rescue bid fails

ATTEMPTS by administrators to sell troubled electric van maker Modec have failed, it was revealed today.

Zolfo Cooper said today 25 people would be made redundant as a consequence, in addition to the 26 redundancies announced when Coventry-based Modec went into administration last month, following funding problems.

The firm said in a statement: “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.”
Modec had been unable to restructure its finances and had been in talks with ultimate parent Navistar since the beginning of the year.

Ryan Grant, Partner, Zolfo Cooper, said: “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.

“We appreciate that this has been a very difficult time for all staff but we would like to take this opportunity to thank them for their continued professionalism and dedication to the business during this period.”