Fleet News

Electric commercial vehicle maker ceases trading

Electric van maker Modec is to cease trading after administrator Zolfo Cooper failed in its attempts to find a buyer for the Coventry-based firm.

Last month Modec announced it was to enter administration, making 26 employees redundant, after an acquisition deal with current stakeholder Navistar fell through.

Having been unable to find a suitable buyer for the business as a going concern and with its most recent accounts for the year to December 31, 2009 showing a pre-tax loss of £5.9m, a further 25 people will now be made redundant as production ends after four years at the Coventry site.

Modec, in Binley, Coventry, was taken over by administrator Zolfo Cooper on March 4, when 25 out of 63 staff were made redundant.

Zolfo Cooper said it had no choice but to cease trading and make the majority of the remaining employees redundant.

But it has been able to achieve a sale of the remaining assets of the company.

A small number of employees will stay on at the site in the short term to help with winding down operations.

A statement released by the company says: "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."

Navistar’s eStar all-electric commercial van will continue to be produced despite the recent closing of its British partner, Modec.

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