Orbex: Scotland-based rocket company collapses with over 150 jobs at risk after takeover talks fail

Rocket manufacturer Orbex revealed on Wednesday it is in the process of appointing administrators after the “fundraising, merger and acquisition opportunities” it was exploring ended in failure.

The company’s 160 employees were informed on Wednesday, according to reports.

Orbex had been supported by the UK government in recent years as part of its ambition to be the first country to launch a commercial satellite into orbit from western Europe.

However, the launch of the rocket was repeatedly delayed and last month it was revealed the Scotland-based startup had entered talks to sell its business to European space group The Exploration Company.

On Wednesday, the firm said its Series D funding round had “ultimately failed” and the merger and acquisition opportunities it had explored had been unsuccessful.

It said it had filed a notice of intention to appoint administrators and will continue trading while options for the future of the company are explored, including the potential sale of all or parts of its business or assets.

It said the notice provides “short-term protection” and allows the business time to secure as positive an outcome as possible for its creditors, employees and wider stakeholders.

The firm’s Danish subsidiary filed for bankruptcy in January.

Phil Chambers, CEO of Orbex, said: “Disappointing doesn’t come close to describing how we feel about this moment. We have been successfully developing a sustainable, world-class sovereign space launch capability for the UK and were on the cusp of our first test flights later this year.

“It is no secret that designing and building space rockets to enable a launch service is a capital-intensive, highly advanced process with a long development cycle that creates a ‘scale-up’ funding gap.

“Institutional support is crucial to bridge this gap and we have worked tirelessly to try to find both funding or rescue solutions.

“What is most disappointing is that we have brought hundreds of skilled jobs to Scotland; we have been at the vanguard of the UK’s space ambitions; we have led the way in driving good news about the UK’s space sector.

“Yet all of this progress now risks being undone – and it is real people who will feel the consequences.”

The first test launches of Orbex’s rocket, Prime, were due to take place later this year.

It was hoping to launch from SaxaVord, a base on the Shetland Islands.

SaxaVord Spaceport CEO Scott Hammond said: "While this is a sad day for Orbex, and for its staff who will now be looking for new jobs, it will have very little impact on SaxaVord.

"While we had agreed Heads of Terms with the company, Orbex had never reached a position to start on site at SaxaVord and let us develop infrastructure for them to launch from.

"Our business model has always been multi-client because at the outset we recognised that in what is a very competitive rocket launch market not all players would succeed.

“For us, fortunately, it is business as usual as we work with our other clients on testing, test flights and launches in the months and years ahead.

“SaxaVord is very much ready for launch. For the Orbex staff who now find themselves out of work, I am sorry and I wish them well."

Glasgow-based rocket company Skyrora could by assets

On Thursday, rocket manufacture Skyrora confirmed it could buy “select” Orbex assets - including the Sutherland Spaceport - saying it is the company “best placed” to do so.

The firm, which has its headquarters in Glasgow, said its potential asset acquisition could involve up to £10 million worth of investment.

It said the move is “vital” to protecting the UK’s space capability and infrastructure, and ensuring technology remains under UK ownership.

Dr Jack-James Marlow, COO at Skyrora said: “Skyrora is committed to delivering sovereign launch capability for the UK; providing reliable, independent access to space is crucial to the UK’s strategic interests.

“Launch will not only unlock commercial activity for companies that need to access space and help achieve the government’s objectives for becoming a global player in the space sector, but it is also a strategic defence consideration.

“As the only UK company with a domestic launch license and both manufacturing and testing capabilities, Skyrora is best placed to take over Orbex’s assets and is proud to be leading launch activity from the UK.”