The administrators of collapsed electric van pioneer Modec have not been able to sell the firm as a going concern, meaning a further 25 people have been made redundant
Modec fell into administration at the beginning of March amid cashflow problems, saying the global downturn had meant the take-up of electric commercial vehicles had not been as strong as anticipated.
On appointment Zolfo Cooper made 26 redundancies at the van-maker.
The firm had hoped that a takeover by its American joint venture partner Navistar would see it through, but the transaction collapsed at the last minute, leaving it with no option but to call in the administrators.
Navistar has now emerged as the buyer for Modec’s remaining assets, which could raise fears that technical expertise built up in the West Midlands could be taken out of the country.
Zolfo Cooper said that despite its best efforts, it had been unable to find a suitable buyer for the business as a going concern.
A small number of employees will stay on at the site in the short term to assist with winding down operations.
Ryan Grant, partner at Zolfo Cooper, said: “Despite rigorously pursuing expressions of interest, we have been unable to find a suitable buyer for the business as a going concern.
“Regrettably, we have therefore been left with no choice but to cease trading and make the majority of the remaining employees redundant with immediate effect.
“We appreciate that this has been a very difficult time for all staff but we would like to take this opportunity to thank them for their continued professionalism and dedication to the business during this period.”