Virgin Orbit, owned by businessman Richard Branson, ran into financial trouble after a failed launch.
Virgin Orbit, the aerospace company owned by renowned British businessman and billionaire Richard Branson, has filed for bankruptcy in the United States after failing to raise fresh capital to continue its operations.
The company, which specializes in launching satellites (not to be confused with Branson’s other space company, Virgin Galactic) ran into trouble after a failed space rocket launch earlier this year. Last week it was already announced that the company had to cease operations and that the majority of the staff (750 people) will be laid off.
Virgin Orbit attempted the first space rocket launch using satellites from Western Europe in January, but that mission failed. The rocket was launched from a modified Boeing 747 named Cosmic Girl that had taken off from South West England. Over the Atlantic Ocean, at an altitude of just over 10 kilometers, the Cosmic Girl released a rocket, the LauncherOne. But it failed to launch the nine-satellite rocket into orbit, and the satellites were lost. The plane Cosmic Girl returned to the airport in Cornwall without any problems. Since the failed attempt, the company has struggled to raise new funds.
The bankruptcy comes less than two years after Virgin Orbit went public, where it was valued at about $3 billion. With the so-called chapter 11 procedure, a possible resale is now being looked at.