Sir Richard Branson’s space launch company, Virgin Orbit, has filed for Chapter 11 bankruptcy in the U.S. after coming up short in their search for rescue funding. This comes after the Virgin Orbit rocket failed to complete its first satellite launch from the U.K. in January. The business lodged a filing with the U.S. Bankruptcy Court for the District of Delaware in order to facilitate a sale of the remaining business.
Last week, the group informed that it would be cutting 675 jobs, which amounts to about 85% of their workforce, as they continue their hunt for financial aid.
Virgin Orbit, which is 75% owned by the Virgin Group, and based in California, also suspended all operations in March due to financial strain. Mr. Branson and his Virgin Investments business have invested about $43 million into Virgin Orbit in recent weeks in order to finance operations, severance packages and the process. In total, the Virgin Group has put more than $1 billion into the company.
Virgin Orbit CEO Dan Hart stated: “The team at Virgin Orbit has worked hard to develop and put into operation a new and inventive way of launching satellites into orbit. This included introducing new technology, taking on great challenges and risks to prove the system and executing several successful space flights, including sending 33 satellites into the right orbit. Despite our efforts to improve our financial situation and acquire additional funding, we had to make the best decision for the business. We believe that the cutting-edge launch technology developed by our team will be highly attractive to potential buyers as we proceed with the sale of the company. We believe that the Chapter 11 process will help maximize value and provide an efficient solution.”
