Modec flatlines without buyer
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ELECTRIC VAN manufacturer Modec is to cease trading after administrator Zolfo Cooper failed in its attempts to ind a buyer for the Coventry-based irm.
Last month Modec entered administration after an acquisition deal with current stakeholder Navistar fell through. However a suitable buyer for the business as a going concern could not be found, and with its most recent accounts for the year to 31 December 2009 showing a pre-tax loss of £5.9m, production will end after four years at the Coventry site.
Zolfo Cooper’s Ryan Grant said: “Despite rigorously pursuing expressions of interest, we have been unable to ind a suitable buyer for the business as a going concern.” A statement from Modec adds: “The administrators have no choice but to cease trading and announce the redundancy of the majority of the remaining employees. A small number 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.”