Good night, sweet Modu.

We always sorta liked the idea behind Modu: buy one itty bitty, candy-bar-esque phone, and then plunk that phone into any one of a half-dozen or so cases (or, as they call them, “Modu jackets”) that convert the handset into just about any form factor imaginable.

Unfortunately, it was the answer to a problem that nobody really had; most people tend to be comfortable enough with one form factor that they don’t need to switch all that often — and even those who aren’t wouldn’t bother lugging around a bunch of “jackets” to swap between.

And, as the story tends to go when smaller parties with big dreams set out to change the cell phone world one whacky piece of hardware at a time (see: Helio), Modu is closing up shop. According to Israel’s ynet modu is hundreds of millions deep in debt to both investors and employees, and will be dropping the shutters in early February.

[Via BGR]