UK Rocket Firm Orbex Moves to Appoint Administrators After Funding Efforts Collapse

Scottish space company Orbex has begun the process of appointing administrators after failing to secure fresh funding or a buyer, casting uncertainty over the future of one of Britain’s most prominent launch ventures.

The company confirmed it will continue trading while administrators explore options, including a potential sale of the entire business or selected assets. The move follows the collapse of a recent fundraising round and unsuccessful merger discussions, leaving the rocket maker without the capital required to complete development plans.

Chief executive Phil Chambers said the setback put hundreds of skilled jobs in Scotland at risk and could hinder the United Kingdom’s ambitions to build a domestic satellite launch industry. He described the situation as deeply disappointing, noting that space technology projects demand long development cycles and significant upfront investment.

Orbex had previously estimated it would require around 120 million pounds to support development through the end of the decade. Despite efforts to attract investors and strategic partners, the company said talks did not result in an agreement. Discussions had taken place with European space company The Exploration Company, but no deal was reached.

The Financial Times reported that a planned funding round fell through after Britain’s National Wealth Fund withdrew over concerns about risk exposure. The same report indicated that Orbex’s Danish subsidiary filed for bankruptcy last month, adding to the financial strain facing the group.

Orbex had been preparing for initial test flights of its 19 metre Prime rocket later this year. Prime is designed as a small payload launcher with a lower carbon footprint compared with traditional systems, positioning the company within the growing market for compact satellite launches. The rocket is intended to operate from SaxaVord Spaceport in the Shetland Islands, one of the UK’s designated spaceports.

The company had already postponed its first launch target from 2025 to 2026, citing infrastructure and regulatory delays. Despite the setbacks, Orbex had secured commercial launch commitments from satellite customers and had been selected to represent Britain in a 169 million euro programme backed by the European Space Agency aimed at flying a small rocket by 2027.

Orbex also received investment support from the British government in early 2025 as part of broader efforts to develop a sovereign launch capability. The UK government has identified space as a strategic growth sector, seeking to reduce reliance on overseas launch providers and stimulate high value manufacturing jobs.

Administrators will now assess whether a sale or restructuring can preserve parts of the business. The outcome will be closely watched by industry observers, given the symbolic importance of Orbex to Scotland’s emerging space cluster and the wider UK launch sector.