Failed rocket maker took local firms to the cleaners

By the Editorial Team · Tuesday, July 7, 2026

UK rocket manufacturer Orbex, which aimed to develop reusable launch vehicles and build a spaceport in Scotland, entered administration in February owing nearly £117 million in debts, including significant unpaid sums to local small businesses and government bodies. The company’s failure highlights the high financial risks in the emerging UK space sector despite receiving over £76 million in public funding and extensive private investment.

Orbital Express Launch (Orbex), a UK-based rocket manufacturer that collapsed in February, owed substantial debts to a range of creditors, including several local small businesses. Founded in 2015, the company aimed to develop a reusable rocket to launch satellites into space, securing £138.5 million in grant and equity funding through public and private sources. Among this financing was £76 million in public funds, featuring £26 million from the UK government and £29 million from the Scottish National Investment Bank, with additional support from Scottish Enterprise and Highlands and Islands Enterprise.

Orbex also pursued plans to develop a spaceport in Sutherland, northern Scotland, but the project was put on hold to conserve resources and prioritize rocket launches from an alternative site in Shetland. Despite significant investment, the company entered administration after failing to secure further financing or find a buyer. This led to the redundancy of more than 160 staff, primarily based in the company’s manufacturing facility in Forres, Moray, marking a setback for the emerging UK space technology sector.

Administrators from FRP Advisory reported that Orbex’s monthly cash burn reached approximately £2 million due to the capital-intensive nature of rocket development. They projected a deficit of nearly £117 million, reflecting the gap between the value of the company’s assets and what it owed to shareholders and creditors. The statement of affairs from Orbex directors, publicly available through Companies House, reveals the company held only £689,000 in cash and fixed assets valued at £1.9 million. The most significant asset was a £7.7 million inter-company debt owed by Sutherland Spaceport.

Among unsecured creditors owed close to £57 million overall, the likelihood of recovering funds appears minimal. Local businesses were among those left unpaid, including Auld Smokey Pizza, a mobile catering company from Aberdeenshire, which was owed £374. Other regional creditors included Macduff Shipyards (£648), Café 1496 in Forres (£480), Moray Locksmith (£381), and Elgin Express dry cleaners (£161). Smaller amounts were also owed to community organizations such as the Forres Area Community Trust (£140), and to local retailers including S&D Harper (£120) and Keith Builders Merchants (£107). Moray Council was listed as owed £31,661 in unpaid taxes.

Beyond the local scale, major debts were owed to financial and aerospace firms. The European investment bank Bryan, Garnier & Co was owed over £355,000, Spanish aerospace company CiTD Engineering & Technologies was due £252,315, and Deimos Space UK, an aeronautics engineering group, was owed £450,000. The company’s collapse underscores the financial challenges involved in developing new space technologies despite substantial government and private sector backing.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.