Scottish aerospace company Orbex has formally filed a notice of intention to appoint administrators, marking a significant setback for the United Kingdom’s domestic space launch ambitions. The decision initiates insolvency proceedings and places approximately 150 UK-based jobs at risk, following the collapse of important acquisition and funding talks.
The announcement comes after a planned takeover by the European space logistics startup, The Exploration Company (TEC), fell through. The two firms had signed a letter of intent in January 2026 to consolidate their operations, but the deal could not be finalized. According to industry reports surrounding the insolvency, all avenues for fundraising, mergers, and acquisitions concluded unsuccessfully, leaving administration as the necessary next step.
Orbex Chief Executive Officer Phil Chambers addressed the development, stating that the company had been on the verge of its first test flights later this year. “Disappointing doesn’t come close to describing how we feel about this moment,” Chambers said, highlighting the capital-intensive nature of designing and building space rockets and the challenges of the current funding landscape for scaling aerospace hardware.
The structural unraveling of the company began earlier in the year. On January 20, Orbex’s Danish subsidiary filed for bankruptcy, resulting in the closure of its rocket engine factory in Denmark and the redundancy of 90 employees. Furthermore, the company was reportedly overdue in filing its 2024 financial accounts, which were required by the end of December 2025, signaling tightening financial pressures.
Prior to these proceedings, Orbex had been a leading player in the European private space sector, backed by tens of millions of pounds in public investment from both the UK and Scottish governments, as well as private venture capital. The firm was developing “Prime,” a 19-meter, two-stage micro-launcher designed to run on a low-carbon footprint and deliver small satellites into Low Earth Orbit from the Sutherland Spaceport in the Scottish Highlands.
Under the protection of the administration notice, Orbex will continue trading in the short term. Administrators will now evaluate all options for the company’s future, which may include the sale of the entire business, specific technological assets, or its intellectual property, in an effort to secure the best possible outcome for creditors, employees, and stakeholders.
