Company deep in debt with investors

Israeli cellphone maker Modu is reportedly set to close its doors early next month, after failing to establish an IPO late last year, according to a report in the local newspaper Ynet. Founder Dov Moran apparently failed to raise money from other sources of capital, leaving the company deep in debt to investors.

A separate report suggests the startup may also owe money to its former employees, as the staff has already been cut to a limited number of salespeople tasked with clearing inventory. A group of employees filed a liquidation request, asking the local courts to help recover salaries they claim were never paid.

Modu's cellphone concept focused on modular components that could be connected to the Modu T, which holds a Guiness World Record for the lightest touch phone, or the Android-based Modu W. Attachable components included a camera, speakers, and QWERTY keyboard. [via BGR]

By Electronista Staff