Virgin Orbit, the company dedicated to the design of rockets for the launch of small satellites, has announced that it has filed for Chapter 11 bankruptcy in the United States and that it will be put up for sale. The decision comes after the company announced last week the layoff of 675 employees, equivalent to 85% of the workforce of this subsidiary of British billionaire Richard Branson’s empire.
Virgin Orbit CEO Dan Hart said that the company has made significant efforts to improve its financial situation and obtain additional financing, but that they have to do what is best for the company. The goal of Virgin Orbit, created by Richard Branson in 2017, was to offer a new and innovative method of launching satellites. In early January, its 21-meter rocket, launched from a Boeing 747 off the coast of Cornwall, UK, failed to reach orbit, resulting in the loss of all nine satellites it was carrying.
Since then, the company has suffered a severe blow to its finances, leading to a bankruptcy filing. Although small launcher projects have popped up around the world, only one remains operational: New Zealand’s RocketLab.
Virgin Orbit’s stock on the New York Stock Exchange has fallen 3% to 19 cents. By filing for bankruptcy, the company hopes to find a way to identify and finalize an effective sale and optimize the value of the company.