Here’s a rewritten version at around 360 words with a clean news-report style:
One of the UK’s few homegrown space-rocket companies is on the brink of collapse, despite receiving £26 million in taxpayer-backed loans just last year.
Orbex, a Scottish start-up aiming to deliver the first vertical rocket launch from British soil, is preparing to appoint administrators unless it can secure an urgent rescue deal. The company filed a notice of intent this week, placing around 150 jobs at risk and casting fresh doubt over Britain’s ambitions in the space sector.
The firm had planned to launch its Prime rocket from the Saxavord spaceport in the Shetland Islands, marking the UK’s first domestic space launch since Virgin Orbit’s failed mission in 2023. However, repeated delays pushed the programme back, and Orbex has struggled to stabilise its finances.
Last month the company entered merger talks with Germany’s The Exploration Company, raising hopes of a lifeline. But a source said on Wednesday that negotiations now appear to have collapsed.
Business Secretary Peter Kyle approved £20 million in government loans for Orbex in January 2025, describing the company as a “unique opportunity” capable of boosting Britain’s space credentials. The funding was structured as loans that could later convert into equity.
Despite that support, Orbex has been unable to attract fresh private capital. Although it has previously raised more than £100 million from investors, the firm admitted last year it would need at least £120 million more to complete development of its launch vehicle.
The Government added another £6 million last summer as Orbex sought tens of millions in backing from the European Space Agency to build a new launcher. While the agency later earmarked funding, it was frozen while Orbex searched for further investment or a buyer. Talks with Rachel Reeves’s proposed National Wealth Fund also fell apart late last year.
Orbex’s potential failure is a major setback for Britain’s goal of becoming a European alternative to SpaceX launches. The company is one of only a handful targeting operations from Saxavord, alongside Germany’s RFA and Scottish rival Skyrora.
Phil Chambers, Orbex’s chief executive, said the situation was devastating. He said the firm had been close to its first test flights and had created hundreds of skilled Scottish jobs, adding that the collapse risked undoing years of progress and leaving “real people” to bear the consequences of a funding gap in Britain’s space ambitions.
