Orbex, a space rocket company based in Forres, Moray, has filed a notice of intention to appoint administrators after failing to secure necessary funding. The move comes as the company was reportedly "on the cusp" of its first test flights of its Prime microlauncher, scheduled for later this year. The company will continue trading while exploring options for its future, including potential sales of its business or assets.
The funding crisis follows unsuccessful efforts to raise capital through a Series D funding round and merger and acquisition opportunities. Orbex had planned to conduct test launches from SaxaVord Spaceport in Shetland, positioning itself as a key player in developing what it described as a "sustainable, world-class sovereign space launch capability for the UK."
Phil Chambers, chief executive of Orbex, expressed deep disappointment at the situation. «Disappointing doesn't come close to describing how we feel about this moment,» he said. «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.»
Chambers pointed to the financial challenges inherent in rocket development. «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,» he explained. «Institutional support is a crucial to bridge this gap and we have worked tirelessly to try to find both funding or rescue solutions.»
Impact on Jobs and Space Sector
The chief executive emphasized the broader consequences of the failure. «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,» Chambers said. «Yet all of this progress now risks being undone – and it is real people who will feel the consequences.»
Spaceport Response
Scott Hammond, chief executive of SaxaVord Spaceport, said the situation would have "very little impact" on the spaceport's operations. «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,» Hammond stated. «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.»
Hammond explained that SaxaVord operates on a multi-client business model. «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,» he said. «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.»
The spaceport chief executive expressed sympathy for affected staff. «For the Orbex staff who now find themselves out of work, I am sorry and I wish them well,» he added.
Note: This article was created with Artificial Intelligence (AI).
