Modu Ltd., maker of some of the smallest cell phones in the world, will soon be forced to shut its doors according to a pair of reports from Israeli news site Ynet. The news follows reports from November of last year stating that the Israel-based company was forced to cancel a planned IPO and instead begin laying off most of its staff. It now appears as though modu will be forced to close in early February and until then, only a small sales team will remain in place to sell off remaining inventory. According to the report, modu currently owes $123 million to investors and another $21 million to the Israel Discount Bank. Modu may also owe a substantial sum to former employees, who today filed a liquidation request with Israeli courts in an effort to recoup salaries they are allegedly owed. Modu made a name for itself in 2008 when it announced a tiny modular cell phone that could take on new shapes and functions by sliding into various accessories. It would later announce two new devices — the modu T phone, the lightest touchscreen phone in the world, and a Wi-Fi-only VoIP phone called the modu W — but neither phone would become widely available.