The satellite launch company had suspended its activities a few weeks ago, but it still had hopes to find a buyer while 85% of its 750 Californian employees were getting laid off -- to reduce expenses due to its inability to secure sufficient funding.
Termed as Britain's SpaceX, many believed the company could make Britain a real contender in the aerospace industry. But , a Tuesday statement confirmed, Virgin Orbit, founded by Richard Branson, has filed for Chapter 11 bankruptcy and will sell the business, the firm said in a statement Tuesday.
News comes days after Virgin Orbit CEO Dan Hart told employees during an all-hands meeting that the company was ceasing operations “for the foreseeable future.”
Virgin Orbit went public in 2021 through a blank-check deal, raising $255 million less than expected. Derived from Branson’s space tourism firm Virgin Galactic in 2017, Virgin Orbit air-launches rockets from beneath a modified Boeing 747 plane to send satellites into orbit.
On Tuesday, the firm said
"it commenced a voluntary proceeding under Chapter 11 of the U.S. Bankruptcy Code... in order to effectuate a sale of the business" and intended to use the process "to maximize value for its business and assets."
More Virgin Orbit News....
Virgin Orbit’s sixth mission in January with its Cosmic Girl aircraft and LauncherOne rocket, the first rocket launch out of Britain, failed to reach orbit and sent its payload of U.S. and UK intelligence satellites plunging into the ocean.
The company scrambled to find new funding after the rocket failure, halting operations and furloughing nearly all its employees on March 15 to conserve cash, while it held funding negotiations and explored strategic opportunities..
But at an all-hands meeting on Thursday, CEO Dan Hart told employees that operations would cease "for the foreseeable future," US media reported at the time.
"While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business," Hart said in the company statement on Tuesday.
"We believe that the cutting-edge launch technology that this team has created will have wide appeal to buyers as we continue in the process to sell the Company."
Founded by Branson in 2017, the firm developed "a new and innovative method of launching satellites into orbit," while "successfully launching 33 satellites into their precise orbit," Hart added.
Virgin Orbit’s core strategy has been that launching small rockets from a modified Boeing 747 in flight would allow the company to be flexible enough for the short-notice launches from anywhere in the known world.
However, experts believe — a shift in demand toward larger launch rockets and more cost-effective shared rides to space on SpaceX’s Falcon 9 rocket over the past two years raised the competitive stakes for Virgin Orbit.
Virgin Orbit’s bankruptcy filing showed its largest creditor as London-based Arqit Ltd, which was owed almost $10 million for services and as a customer deposit.
Company’s second-largest creditor was the United States Space Force, which had a deposit of almost $6.8 million for future launches, according to the filing.
Virgin Orbit Launch Story....
