Richard Branson’s rocket firm Virgin Orbit files for bankruptcy
Virgin Orbit, the satellite launch company founded by British billionaire Sir Richard Branson, has filed for bankruptcy in the US due to a failure to secure new investment.
The company, which is a spin-off from Sir Richard’s space tourism firm Virgin Galactic, halted its operations weeks ago and announced that it plans to cut 85% of its 750-strong workforce.
Virgin Orbit will now look to find a buyer for the business, with the aim of providing clarity to customers, vendors, and employees about the future of the company.
It launches rockets from beneath modified Boeing 747 planes to send satellites into space, but an attempt to launch a satellite into orbit from the UK earlier this year failed when a rocket fuel filter became dislodged, causing an engine to overheat.
Virgin Orbit had debts of $153.5m as of September 2022. Sir Richard and Virgin Group have invested over $1bn in Virgin Orbit with the aim of launching satellites and developing reusable space planes for brief sub-orbital trips for tourists. Virgin Galactic has already started selling tickets for $250,000 for these journeys.
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