Virgin Orbit Holdings, Richard Branson’s satellite launch company, has filed for Chapter 11 bankruptcy in the US due to the failure of a rocket launch in January which prevented it from securing new investment.
The California-based company has stopped operations weeks ago and has filed for bankruptcy in the US Bankruptcy Court for the District of Delaware to secure a buyer for its assets. CEO Dan Hart has confirmed that the company has made ‘great efforts’ to address its finances and secure more funding, but ‘we ultimately must do what is best for the business.’
The company has listed assets worth $243m in the filing, with total debt being $153.5m as of September 30. The firm, which was formed in 2017 and went public in 2021, undertakes air-launches of rockets from beneath a modified Boeing 747 plane to send satellites into orbit. Virgin Orbit has laid off approximately 85% of its 750 employees, and its main shareholder, Virgin Group, holds approximately 75% of its shares.
Virgin Orbit has been struggling to secure new funding since the January rocket failure, which was its sixth mission with its centrepiece LauncherOne rocket. The rocket failed to reach orbit and sent its payload of US and UK intelligence satellites plunging into the ocean.
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