Modec enters administration
Coventry-based electric van maker Modec has entered administration, making about half of its workforce redundant. The Birmingham office of Zolfo Cooper has been appointed administrator to the company.
Modec employs 53 staff, 26 of whom were made redundant after the revelation that the company had entered administration.
In a statement, recovery specialist Zolfo Cooper said it was left with “no choice” but to make the 26 members of staff redundant, adding “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 administrators.
It is thought that the company fell into administration after experiencing cash flow problems.
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.
