Coventry-based electric van manufacturer Modec has entered into administration, making about half of its staff redundant.
Ryan Grant, Simon Appell and Anne O’Keefem, partners at Zolfo Cooper, have been appointed administrators to the company, which employs 53 people, 26 of whom were sacked after the revelation that the company had entered administration.
Commenting, Ryan 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.”
The administrators will continue to trade the business as they assess all options for the its future, including attempting to find a buyer for Modec.
In order to continue trading and protect the value of the business, the joint administrators said they had been left with no alternative but to make 26 employees redundant upon appointment. The remaining 27 employees will continue as normal in their roles at the company.
“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,” Grant continued.
Modec previously secured a £23m grant from the US government in 2009 to make electric vans with US firm Navistar.
However, it is thought that the number of orders secured was significantly lower than expected.