97-year-old aerospace manufacturer Magellan Aerospace Middletown files Chapter 11 bankruptcy

Kirk O'Neil Fri, July 24, 2026 at 9:03 AM PDT | 3 min read

Despite modest increases in aerospace production rates in 2025, according to a Deloitte report, some manufacturers continue to struggle. Magellan Aerospace Middletown, an iconic aerospace products manufacturer, has filed for Chapter 11 bankruptcy.

Bankruptcy Filing

Magellan Aerospace Middletown Inc. filed for Chapter 11 bankruptcy to stabilize its business, operations, and finances, according to court documents. The company aims to determine whether sufficient changes will allow it to better compete in the market and continue as a stand-alone entity.

The debtor seeks to preserve the business as a going concern, maintain employment, and continue customer relationships, according to a declaration by the company's sole independent director, Michael Goldberg. The company will consider all alternatives, including a potential sale or other value-maximizing transactions.

The Middletown, Ohio-based debtor filed its petition in the U.S. Bankruptcy Court for the Southern District of Ohio on July 22, listing:

• Assets: $10 million to $50 million
• Debts: $50 million to $100 million

Company Structure and Debt

Magellan Aerospace Middletown is 100% owned by Magellan Aerospace USA, which has not filed for bankruptcy. Mississauga, Ontario-based Magellan Aerospace Corporation is the parent company of Magellan Aerospace USA.

The debtor has no secured debt and no public debt. All obligations are unsecured debt, totaling over $82 million.

Largest Unsecured Creditors

• The Reynolds Group — owed over $170,000
• Mound Manufacturing Center Inc. — owed over $113,000
• Fidelity 401K — owed over $87,000
• Duke Energy — owed over $53,000
• MSC Industrial Direct Co. — owed over $49,000
• CT Security Services — owed over $49,000
• Trimech Enterprise Solutions Corp. — owed over $39,000

Financial Performance

The debtor, which employs 109 workers, reported:

| Period | Net Loss | Revenue | |--------|----------|---------| | 2025 | $8.5 million | ~$26.3 million | | 2026 (through June 30) | $2.8 million | $16.8 million |

Annual revenue has decreased year-on-year as a result of a winddown of contracts beginning in 2020. The company had secured jet exhaust systems contracts with Airbus on its A340, A318, and A380 models, as well as the Boeing 747 and 767 aircraft. Production of the A340, A380, and 747 has since ended, leading to the cancellation of those contracts.

Products and History

The company manufactures jet engine nacelle and exhaust components, as well as heat-resistant space products for the commercial, military, and space sectors. Among its notable products were heat shields for NASA's Apollo and Space Shuttle programs.

Company Timeline

• 1928 — Founded as Aeronautical Corporation of America by future Ohio senator Robert Taft, son of former President William Howard Taft
• 1929 — Began manufacturing its first product, the single-seat C-2 Scout personal airplane
• 1931 — Launched the two-seat C-3 version
• Mid-1930s — Led the U.S. in light aircraft production
• World War II — Produced products for the military
• Post-war — Returned to civilian aircraft production
• 1951 — Exited the light aircraft business to focus on high-strength engine and airframe structures for commercial, military, and space sectors
• Late 1950s — Acquired Longden Aircraft Company (sold in early 1990s)
• Mid-1990s — Became a subsidiary of Magellan Aerospace Corporation

Industry Outlook

Research firm Deloitte expects growth in the aerospace production sector in 2026.