SpaceX Parts Supplier Dynamic Aerostructures Files For Bankruptcy, Bid Deadline Set – Lockheed Martin (NYSE:LMT), Boeing (NYSE:BA)

Dynamic Aerostructures, which makes high-tech parts for U.S. fighter jets and SpaceX rockets, has filed for bankruptcy.

What Happened: According to Bloomberg, the Valencia, California-based company plans to auction itself off in a court-supervised sale.

Dynamic is owned by a private equity firm, Endeavour Capital. Dynamic’s operating unit, Forrest Machining, LLC (aka FMI Aerostructures) was purchased by Endeavour Capital in 2021.

The company blamed quality-control issues, contracts and inflation-driven inventory costs for the financial nosedive.

CEO Eric Ellis insists it’s still “business as usual” while they search for a buyer, with an April 7 bid deadline set for potential suitors.

See Also: EV Startup Canoo Files For Bankruptcy After NASA, USPS, Walmart Partnerships Bear Little Fruit

Why It Matters: The company is saddled with $55 million in debt. In addition to SpaceX, the company is also a key supplier for Blue Origin, Boeing Co BA, Lockheed Martin Corp LMT, and Northrop Grumman Corp NOC, including making parts for the B-2 Spirit stealth bomber.

The company’s situation also illustrates the challenging record of private equity and venture capital-backed companies. In 2024, PE-backed companies made up nearly 16% of the 694 total U.S. bankruptcy filings, per Transact.io, citing S&P Capital data.

That’s the highest annual tally since 2010.

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