Virgin Orbit, the rocket company founded by British billionaire Sir Richard Branson, filed for bankruptcy Monday in the U.S.
The filing comes as Virgin Orbit’s team were unable to secure new investment, shortly after its first satellite launch out of Britain ended in failure, the BBC reported. The California-based company announced Friday that it would cut 85% of its 750 workers, with the first being released from their positions before the bankruptcy filing in the U.S. Bankruptcy Court for the District of Delaware, The Associated Press (AP) noted.
Virgin Orbit’s boss Dan Hart said the company’s focus is now on finding a buyer “to provide clarity on the future of the company to its customers, vendors, and employees,” the BBC continued. Great efforts were taken to keep the company going, but leadership decided it “ultimately must do what is best for the business,” Hart noted.
Virgin Orbit to Continue Sale Process Under Chapter 11 Protection. Read more: https://t.co/MhsPTxqUQF pic.twitter.com/xOMMXEC0oK
— Virgin Orbit (@VirginOrbit) April 4, 2023
Founded in 2017, Virgin Orbit was a spin-off company of Branson’s Virgin Galactic. The concept was to launch rockets from beneath a modified Boeing 747 plane in order to send satellites into our cosmos. (RELATED: ‘Something Weird’ Is Happening In Space And Scientists Are Stumped)
The company lists on the New York Nasdaq index and had debts of some $153.3 million in September 2022, the BBC noted. Virgin Investments, another sister company of Branson’s sprawling brand, will provide $31.6 million to support Virgin Orbit through the journey of finding a buyer.