Orbex's Danish Subsidiary Files for Bankruptcy: A Troubled Space Venture
Orbex's Danish subsidiary, Orbital Express Launch ApS, has filed for bankruptcy, marking a significant setback for the UK-based space company. With its facilities set to close on January 20, approximately 90 employees will be laid off, leaving a trail of uncertainty in the space industry.
Orbital Express Launch (Orbex) established its Danish presence in October 2016, aiming to provide a range of services including propulsion, testing, software, avionics, and business support. However, recent financial reports reveal a dire situation. The company's latest filings show a staggering loss of DKK 70.673.917 (€9.46 million) and a negative equity of DKK 55.383.356 (€7.4 million) as of December 31, 2024. The auditors' warning highlights the company's heavy reliance on funding from its parent entity, Orbital Express Launch Ltd., with a significant question mark over its future financial stability.
The situation took a dramatic turn on January 20 when multiple sources confirmed the dismissal of the entire workforce. This development comes as a surprise, especially given the company's recent announcement of talks with European space logistics startup The Exploration Company to sell its remaining operations. The Exploration Company has signed a Letter of Intent, and negotiations are underway, but the details remain confidential.
One source revealed that discussions with The Exploration Company began in December 2025, and Orbex had also sought support from the UK government, but these efforts were unsuccessful. Additionally, an attempt to sell the company to a private consortium fell through due to insufficient capital.
Orbex's main UK entity faces its own challenges, as it is currently overdue in filing its 2024 financial accounts with the UK's Companies House. This lack of transparency makes it challenging to assess the company's current financial health.
Despite the recent £20 million investment from the UK government, Orbex's Series D funding still falls short of its goals. The company needs to raise an additional £120 million in private capital to meet its four-year plan. While ESA Member States, including Denmark, committed €34.9 million, this funding is intended for co-financing launch services, not directly supporting rocket development.
The future of Orbex remains uncertain, leaving the space industry in a state of flux. As the company navigates this crisis, the impact on its employees and the broader space community will be closely watched.
