Branson’s Virgin Orbit files for bankruptcy

The billionaire entrepreneur, who has built an empire of companies under the Virgin brand, has always been known for his resilience and ability to bounce back from setbacks.

Virgin Orbit launched in 2017 as a spin-off from Virgin Galactic, with the aim of providing affordable and flexible services for small satellites. The company developed a unique air-launch system, which involved launching rockets from a modified Boeing 747 aircraft. This approach was meant to offer several advantages over traditional ground-based launches, including the ability to launch from any runway and to avoid weather-related delays.

The California based company announced last week that it would cut 85% of its 750 person workforce. It is hoped that the company will find a new buyer for the business.

Virgin Orbit’s boss Dan Hart claimed that despite taking “great efforts” to address its finances and secure more funding, “we ultimately must do what is best for the business.” Virgin Orbit will now concentrate its efforts to find a buyer for the business to “to provide clarity on the future of the company to its customers, vendors and employees.”

In January 2023 an attempt to send a satellite into orbit from UK soil for the first time failed due to a rocket fuel filter becoming dislodged, causing one of the engines to overheat. This mission was deemed as a milestone for UK space exploration.

Virgin Orbit attempted to find new funding following the UK rocket failure and paused operations last month to conserve cash.

The company, which listed its shares on New York's Nasdaq index in 2021, had debts of £123 million as of September last year.

Earlier this week, Virgin Orbit stated that Virgin Investments, part of the Virgin Group, would provide £25 million to help the company through finding a buyer.

Virgin Orbit has filed for Chapter 11 bankruptcy protection, allowing a business to keep operating and address its financial issues while providing protection against creditors who are owed money.

Melissa Quinn, Head of Spaceport Cornwall, labelled the news about Virgin Orbit was "very sad" but said the site and team would "remain focused on furthering the international space industry".

This is not the end by any means for Virgin Orbit. Many space companies have gone through Chapter 11 bankruptcy, only to re-emerge a few months later with new owners. London-based OneWeb is a perfect example, just completing its broadband internet constellation in space.

In a bid to launch satellites via Virgin Orbit and create reusable "space planes" for sub-orbital space tours, Sir Richard and the Virgin Group have invested over $1 billion in the venture. Virgin Galactic has already begun selling tickets for these excursions at $250,000 each, attracting the likes of Elon Musk.

However, billionaire space race leaders have also been accused of providing indulgent joyrides to the ultra-rich during a period when countries around the world are grappling with climate change.