Sir Richard Branson’s satellite launch company Virgin Orbit has filed for Chapter 11 bankruptcy in the US after failing to secure rescue funding.
It comes after a Virgin Orbit rocket failed to complete the first satellite launch from UK soil in January.
On Tuesday, the business lodged a filing with the US Bankruptcy Court for the District of Delaware as it seeks a sale of the remaining business.
Last week, the group said it would cut 675 jobs – about 85 per cent of its workforce – as it continued to search for a funding lifeline.
Virgin Orbit, which is based in California and is 75 per cent-owned by Virgin Group, also suspended all operations in March amid pressure on its finances.
Mr Branson’s Virgin Investments business has injected around $43 million 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 more than $1 billion into the business in total.
Virgin Orbit chief executive Dan Hart said: “The team at Virgin Orbit has developed and brought into operation a new and innovative method of launching satellites into orbit, introducing new technology and managing great challenges and great risks along the way as we proved the system and performed several successful space flights, including successfully launching 33 satellites into their precise orbit.
“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 finalise an efficient and value-maximising sale.”
