West Midlands electric vehicle firm Modec has fallen into administration with the loss of 26 jobs.
The Coventry-based firm, which was celebrated as one of the most promising low-carbon business hopes for the West Midlands, has called in Zolfo Cooper after experiencing "severe cashflow difficulties".
Modec, which was founded by Lord Jamie Borwick, had been in talks with its American partner Navistar on a takeover deal, but the transaction fell through around ten days ago leaving the firm with no option but to call in the administrators.
Ryan Grant, Simon Appell and Anne O’Keefe, partners at recovery specialists Zolfo Cooper, have been appointed.
Modec, which employs 53 staff, continues to trade under the administrators and there are hopes that a buyer will come forward.
Zolfo Cooper said it had made 26 employees redundant in order to continue trading and protect the value of the business for potential buyers.
The remaining 27 employees will continue as normal in their roles at the company.
Zolfo Cooper partner Ryan Grant said: "Unfortunately, the business has experienced severe cashflow 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.
"Modec is a market leader in its field and as such it represents an attractive purchase for the right buyer.
"We would welcome expressions of interest from potential buyers and these should be directed to email@example.com"