Modec goes into administration
The Coventry-based firm has suffered 'severe cashflow difficulties' and according to the Birmingham Post had been trying to negotiate a takeover by American partner Navistar but talks fell through.
As a result, three partners from Zolfo Cooper have been appointed as joint administrators and have made 26 of the 53 Modec employees redundant with immediate effect.
Partner administrator 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.'
He added: '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 protected]'