Orbex, the Scottish rocket manufacturer, has announced it intends to appoint administrators after failing to secure ongoing funding or find a buyer.

In a statement, the company said that it will continue to operate as normal while it explores options to secure the best possible outcome for its creditors, employees and wider stakeholders, including the potential sale of all or parts of its business or assets.

The announcement follows recent reports that Orbex had been in talks to sell its business to European space‑logistics firm The Exploration Company, one of several merger and acquisition opportunities the company explored, all of which ultimately failed.

Orbex said it had been unable to secure the necessary funding to “remain a viable business” during its Series D round, despite having previously had backing from private investors, major European VC firms, and the UK Space Agency.

The Forres-based space firm, which employs more than 150 people, secured £20 million in funding from the UK Government last year, an investment earmarked to fund development of Orbex’s Prime rocket, the first UK-manufactured orbital rocket, which will now remain grounded. 

That followed a £17.8 million investment by the Scottish National Investment Bank as part of a £40.4 million Series C round in 2022, when the company was valued at $220 million (£161.2m).

“Disappointing doesn’t come close to describing how we feel about this moment,” said Phil Chambers, CEO of Orbex. 

“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 a 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.”

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One possible lifeline has emerged, however, with Glasgow-based space firm Skyora announcing this morning (12 Feb) that it is interested in acquiring parts of Orbex’s business, including the Sutherland Spaceport, as part of a potential asset acquisition which could see the operator invest up to £10 million, subject to discussion with administrators and completion of the necessary due diligence.

Highlands and Islands Enterprise, meanwhile, called the news of administration a “major blow to Orbex, its employees and their families”, in a statement to the BBC, but said that the region still had a “huge amount to offer potential investors in the space sector”.

Likewise, deputy first minister Kate Forbes called the news “deeply disappointing”, but said that the Scottish government remained committed to supporting the country’s space industry, while the UK government said that plans are in progress to develop the UK’s key national space capabilities.