Virgin Orbit has filed for bankruptcy in the US after failing to secure rescue funding.
Sir Richard Branson’s American satellite launch firm announced it would cut 675 jobs – about 85% of its workforce - last week, months after it attempted to shoot a rocket into space from Cornwall.
On Tuesday (April 4), the business lodged a filing with the US Bankruptcy Court for the District of Delaware as it seeks a sale.
Dan Hart, chief executive of Virgin Orbit, 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.”
A Chapter 11 bankruptcy allows a company to stay in business in order to reorganise its affairs, debts, and assets.
It comes after Virgin Orbit’s mission to make British space history, by completing the first satellite launch from UK soil at Spaceport Cornwall, ended in failure, when the craft suffered an “anomaly” during the flight in January.
Virgin Orbit had previously said it was anticipating additional launches from Spaceport Cornwall, and had been in “active discussions” with key government and commercial stakeholders to start plans for new missions “as soon as later this year”.
Bosses at Spaceport Cornwall had also vowed after January's launch to 'go again' with a second planned for later this year, with Cornwall-made satellite - Kernow Sat1 - on board.
Last week Melissa Quinn, head of Spaceport Cornwall, said Virgin Orbit’s hundred of job cuts would have “no direct impact” on the South West space cluster, as it looks to continue its growth.
Virgin Orbit has been a key partner within Spaceport Cornwall and the only company which has launch capability. Cornwall Council has invested more than £10m into the project, and has previously claimed it could result in hundreds of new jobs while attracting businesses in the space industry to the Duchy.
Cllr Louis Gardner, Cornwall Council’s cabinet member for the economy, said after Virgin Orbit announced a pause of its operations earlier this month, that the UK’s only licensed spaceport would be focusing on “progressing relationships with spaceflight operators”.
Mr Branson is set to inject almost £9m to go towards severance costs with Virgin Orbit staff, with the company previously saying it expected to pay out around $15m (£12.1m) to make the cuts.
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