UK Space Company Orbex Enters Administration, Over 150 Staff Made Redundant
Orbex, a prominent UK space company, has collapsed into administration, resulting in the redundancy of more than 150 employees. The company had been actively pursuing fundraising, merger, and acquisition opportunities, but these efforts have now concluded unsuccessfully.
Administrators Appointed Amid Hopes for Business Sale
Restructuring advisors FRP have been appointed as administrators, with the goal of facilitating a sale of the business. According to reports from the Inverness Courier, FRP is already engaged in active discussions with more than 20 interested parties, indicating potential interest in salvaging the company's operations.
Test Launches on the Cusp of Commencement
The company was reportedly "on the cusp" of conducting the first test launches of its micro launcher, Prime. These flights were scheduled to take place at the SaxaVord Spaceport in Shetland, marking a significant milestone in the UK's space industry. A company spokesperson expressed profound disappointment, stating that the term "disappointing doesn't come close to describing" the news of the collapse.
Political and Executive Reactions to the Collapse
Moray MSP Richard Lochhead commented on the situation, emphasizing his concern for the 156 employees affected. "First and foremost, my thoughts are with the 156 employees who have been made redundant as a result of Orbex formally entering administration," he said. "This will be an incredibly difficult time for them and their families." He noted that Orbex had been a leading manufacturer in Europe's space industry, with 35 companies expressing interest in the business, and expressed hope that the highly-skilled jobs could be preserved during the administration process.
Phil Chambers, chief executive of Orbex, highlighted the challenges faced by the company. "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," he said. "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."
Broader Implications for the UK Space Sector
The collapse of Orbex raises concerns about the stability and funding challenges within the UK's burgeoning space industry. As the company sought to establish a sovereign launch capability, its failure underscores the high costs and risks associated with advanced aerospace development. The administration process will now focus on finding a buyer to potentially revive the business and retain its skilled workforce, which is crucial for maintaining the UK's competitive edge in space technology.
