UK launcher Orbex files for administration after failed funding efforts

MILAN — United Kingdom-based launch company Orbex announced that its business is folding after multiple attempts to stay solvent fell through. 

The company announced Feb. 11 that it has filed a notice of intention to appoint administrators — a process in the U.K. that’s similar to declaring bankruptcy — after fundraising, merger and acquisition efforts concluded without success.

Orbex, founded in 2015 and headquartered in Scotland, was selected in 2025 as one of five winners of the European Space Agency’s European Launcher Challenge (ELC). The company has been developing Prime, a small launch vehicle designed to place up to 200 kilograms into low Earth orbit. Prime’s first flight had been planned for late 2026 after several delays.

At ESA’s latest ministerial, Orbex received 34.9 million euros ($41.5 million) under the ELC program, significantly less than the at least 169 million euros allocated to each of the other four selected companies. At the time, the U.K. did not specify how it would distribute the 144 million euros it had budgeted for the ELC.

In December 2025, Orbex confirmed the closure of its Danish subsidiary, Orbital Express Launch ApS, which subsequently filed for bankruptcy. On Jan. 21, the company said it had signed a letter of intent with The Exploration Company, based in France and Germany, to explore a potential acquisition.

The Feb. 11 announcement said attempts to secure capital during its Series D funding round were unsuccessful. The company also explored several merger and acquisition opportunities, none of which resulted in an agreement.

Phil Chambers, CEO of Orbex, said in a press release that “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 remains unclear what the move means for the U.K.’s space ambitions. The development comes one week after Paul Bate, chief executive of the UK Space Agency, announced he will step down at the end of March as the agency transitions from a standalone body into a government department, and a few months after the UK became the only country to diminish its ESA ministerial budget from the previous round. 

“We remain committed to supporting our dynamic space sector,” A U.K. government spokesperson told SpaceNews. “We recognize this will be a very worrying time for staff at Orbex. Space launch is a highly competitive sector, and it has always been the case that some companies will succeed, while others will fail.”

“We will be setting out more details about our plans for developing key national space capabilities, including launch, in due course,” the spokesperson added. “Any decisions will be focused on ensuring maximum impact for taxpayers’ money.”

Scott Hammond, CEO of SaxaVord Spaceport, which had been designated as the launch site for future Orbex missions, said in a press release that  “While this is a sad day for Orbex, 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. For us, fortunately, it is business as usual as we work with our other clients.”

ESA told SpaceNews that the situation at Orbex underscores the realities of the evolving space sector. “Through initiatives like the ELC, we are supporting ambitious ventures and fostering a dynamic ecosystem. This approach is essential to driving progress, even as it comes with inherent challenges,” an ESA spokesperson said.

Orbex will continue trading while leaders debate the future of the company, including a potential sale of all or parts of its business or assets. It remains possible that certain assets or business units could be sold separately to different buyers.

Editor’s Note (Feb. 11, 2026): This article has been updated to include comment from ESA.