Electric van firm Modec up for sale

Half of company’s staff laid off as it enters administration

Electric van manufacturer Modec has gone into administration with the loss of more than 20 jobs.

The Coventry firm, which specialises in the production of all-electric vehicles, was founded by a team of automotive engineers in 2004 and employed approximately 53 staff. Its vehicles came onto the market in March 2007. Supermarket chain Tesco was the company’s first customer. 

Modec has appointed restructuring specialists Zolfo Cooper as joint administrators. Zolfo Cooper partners Ryan Grant, Simon Appell and Anne O’Keefe will continue to trade the business as they assess options for its future, including attempting to find a buyer. 

The administrators said they had been left with no alternative but to make 26 employees redundant on their appointment. The remaining 27 employees will continue as normal in their roles at the company, they said.

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. 

“We regret that we were left with no choice but to make some employees redundant in order to protect the value of this business for potential buyers. We would like to take this opportunity to thank every staff member for their professionalism and dedication during what has been an intensely difficult period.

“At present, we are examining all possible options for the future of the business,” he added. “Modec is a market leader in its field and as such it represents an attractive purchase for the right buyer.”