Southampton based Modus Access UK has ceased trading and entered administration leaving 11 employees redundant.
The firm was originally founded in 2010 by the late Terry Sennett, after three successful years of trading Terry passed the company to its employees to run.
Modus traded across the South Coast and serviced a number of large clients including Kier, British Gas and Southampton City Council. At its peak the business generated turnover of more than £1m and employed 16 members of staff.
However, in the last 18 months the company suffered a downturn in turnover and was no longer able to meet its financial obligations.
Modus Access UK ceased trading on 24 July 2016, administrators RMS were appointed the following day. Following advice provided by RSM it was recommended that the company be placed into administration with a view of achieving a pre-packaged sale of its assets.
In the four weeks leading up to the appointment, RMS undertook a marketing process and various expressions of interest were received. Following negotiations, a sale of the company’s system scaffolding equipment was made to Blencowe Scaffolding, a competitor looking to expand its operations and set up a new division based out of Southampton.
Alexander Kinninmonth, RSM partner and one of the joint administrators, said: “In this instance, it was not possible to rescue the business as a going concern. However, the sale of the assets provides Blencowe Scaffolding with a platform on which it can expand into the local market and delivers the best possible outcome for creditors.”