Virgin Orbit, the satellite tv for pc release corporate based by way of Richard Branson, has filed for Chapter 11 chapter and can promote the industry, the company mentioned in a remark Tuesday.
The California-based corporate mentioned ultimate week it used to be shedding 85 p.c of its staff — round 675 other people — to scale back bills because of its lack of ability to protected enough investment.
Virgin Orbit suffered a significant setback previous this yr when an try to release the primary rocket into house from British soil led to failure.
The corporate had arranged the challenge with the United Kingdom Space Agency and Cornwall Spaceport to release 9 satellites into house.
On Tuesday, the company mentioned “it commenced a voluntary proceeding under Chapter 11 of the U.S. Bankruptcy Code … in order to effectuate a sale of the business” and supposed to make use of the method “to maximize value for its business and assets.”
Last month, Virgin Orbit suspended operations for a number of days whilst it held investment negotiations and explored strategic alternatives.
But at an all-hands assembly on Thursday, CEO Dan Hart informed staff operations would stop “for the foreseeable future,” US media reported on the time.
“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,” Hart mentioned within the corporate remark on Tuesday.
“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.”
Founded by way of Branson in 2017, the company advanced “a new and innovative method of launching satellites into orbit,” whilst “successfully launching 33 satellites into their precise orbit,” Hart added.Â
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