The satellite launch company Virgin Orbit has filed for bankruptcy protection in the US after last-ditch funding efforts fell through.
It comes after a Virgin Orbit rocket failed to complete the first satellite launch from UK soil in Cornwall back in January.
Founded by billionaire Sir Richard Branson, the news comes less than a week after the company announced it was cutting 85% of its workforce.
This had left roughly 100 employees to run what was left of the business.
On Tuesday (April 4), the business lodged a Chapter 11 bankruptcy filing with the US Bankruptcy Court for the District of Delaware as it seeks a sale of the remaining business.
Chapter 11 is a form of bankruptcy in the US which allows the reorganisation of a firm’s business affairs, debts and assets, aimed at keeping the business afloat and repaying creditors over time.
Once it is filed, a business has 120 days to submit a plan of reorganisation with the court.
What did Virgin Orbit say on the matter?
Virgin Orbit chief executive Dan Hart said: “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.
“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.
“At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximising sale.”
A Government spokesman said: “This is a commercial matter for Virgin Orbit. We have worked with the company for many years and our thoughts are with its employees in the US during this difficult time.
“The UK space sector is thriving, generating an income of £17.5 billion a year and employing almost 49,000 people.
“The government remains committed to supporting the development of a dynamic UK spaceflight sector, and our focus is on supporting multiple projects designed to make the UK the leading provider of commercial small satellite launch in Europe by 2030, generating more jobs and growth across the country.”
Cornwall satellite launch failure
In January, Virgin Orbit had sought to complete the first satellite launch from UK soil, at Newquay.
This was with hopes the mission would be a major stepping stone for space exploration from the UK.
However, the firm’s LauncherOne rocket failed to reach orbit and saw its payload of US and UK intelligence satellites dive into the ocean.
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