Modu, an Israeli manufacturer of tiny cell phones and gadgets, is going to shut its doors soon according to several news reports.

The Israeli based site Ynet say Modu is set to close in early February. The company owes $123 million to investors and another $21 million to the Israel Discount Bank. The company also may owe a substantial amount to its former employees. The employees filed a liquidation request with Israeli courts as a way get some of the money they are allegedly owed.

Modu has been known for creating small gadgets, including what they claim is the world's tiniest cell phone, the model W. The Modu T phone was introduced as the world's tiniest touch screen phone with a 2.2 inch screen and weighing 3.5 grams. The company also introduced a tiny Wi-Fi phone version of the W phone. Modu did not release either the wi-fi or touch screen phones to a global audience.

A spokesperson for Modu could not be reached. One of the company's web site listed PR agents said he no longer represents Modu; while the official Modu PR email bounced back.

The company originally planned for an IPO back in November. However, it cancelled those plans soon after.