Three months after it failed to complete the first satellite launch from UK soil, Sir Richard Branson’s rocket firm has filed for bankruptcy.
Virgin Orbit’s move comes after it was unable to secure rescue funding.
It suffered a major setback in January when its rocket – launched from Spaceport Cornwall at Cornwall Airport Newquay – was unable to deploy its satellites into orbit because of a technical hitch.
Virgin Orbit has now lodged a Chapter 11 bankruptcy filing in the US where it is based.
Bosses are seeking a sale of the remaining business.
Chapter 11 is a form of bankruptcy in the US which allows the reorganisation of a firm’s affairs, debts and assets, aimed at keeping the business afloat and repaying creditors over time.
Virgin Orbit chief executive Dan Hart said: “We believe the Chapter 11 process represents the best path to identify and finalise an efficient and value-maximising sale.” The filing has been lodged with the US Bankruptcy Court for the District of Delaware.
Once it is filed, a business has 120 days to submit a plan of reorganisation.
Virgin Orbit said last week it would cut 675 jobs – 85% of its workforce.
The firm, which is based in California and is 75% owned by Virgin Group, also suspended all operations in March.
Sir Richard’s Virgin Investments business has put £35million into Virgin Orbit in recent weeks to fund the process, support recent operations and finance severance packages.
The entrepreneur and his Virgin Group have invested over £800m into the business in all. He spun out Virgin Orbit from space tourism group Virgin Galactic as a new company in 2017.
After Virgin Orbit, which has been weighed down by debt, suspended its operations, Spaceport Cornwall said it is working with other firms. The area’s MP Steve Double said: “I don’t think it’s the end of Spaceport Cornwall.”
