Sir Richard Branson’s rocket company Virgin Orbit files for bankruptcy
Virgin Orbit, Sir Richard Branson’s rocket company, has filed for bankruptcy in the US.
The move comes three weeks after the firm announced it was pausing operations and furloughing 85% of its staff while working to secure further funding. That move sent shares down 18.8% to 82 cents.
On Friday, Virgin Investments injected a further £8.8million into the operation – it had earlier been reported Sir Richard Branson has lost £1.5billion from his stake in the past year.
‘At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalise an efficient and value-maximising sale,’ said Virgin Orbit CEO Dan Hart.
The company listed assets of about $243million and its total debt at $153.5million as of September 30 in the filing. Based in California, it has a workforce of around 750.
The business originally grew as a spinoff from the British billionaire’s commercial space tourism business Virgin Galactic. Touted as a rival to Elon Musk’s SpaceX, the company aimed to launch rockets using a modified Boeing 747, named Cosmic Girl, rather than traditional vertical take-off rockets.
The company’s decision to choose Spaceport Cornwall, Newquay, for its first commercial satellite launch was seen as a huge boost for the UK space industry and the area, potentially creating hundreds of new jobs.
However, shortly after its initial take-off on Monday, January 9, the mission failed. After being released from the wing of the 747, the rocket failed to reach its final orbit, sending customers’ satellites back to Earth.
At the time, Hart said: ‘While we are very proud of the many things that we successfully achieved as part of this mission, we are mindful that we failed to provide our customers with the launch service they deserve.
‘The first-time nature of this mission added layers of complexity that our team professionally managed through. However, in the end a technical failure appears to have prevented us from delivering the final orbit. We will work tirelessly to understand the nature of the failure, make corrective actions, and return to orbit as soon as we have completed a full investigation and mission assurance process.’
January’s failed mission prompted MP Greg Clark, chairman of the Commons science and technology committee to call it a ‘disaster’ that an attempt to showcase the UK’s potential for commercial launches had turned ‘toxic for a privately funded launch’.
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