Virgin Orbit, the satellite tv for pc launch firm based by Richard Branson, has filed for Chapter 11 chapter and can promote the enterprise, the agency mentioned in a press release Tuesday.
The California-based firm mentioned final week it was laying off 85 percent of its employees — round 675 folks — to scale back bills resulting from its incapacity to safe ample funding.
Virgin Orbit suffered a significant setback earlier this 12 months when an try to launch the primary rocket into house from British soil ended in failure.
The corporate had organized the mission with the UK House Company and Cornwall Spaceport to launch 9 satellites into house.
On Tuesday, the agency mentioned “it commenced a voluntary continuing underneath Chapter 11 of the U.S. Chapter Code … in an effort to effectuate a sale of the enterprise” and supposed to make use of the method “to maximise worth for its enterprise and belongings.”
Final month, Virgin Orbit suspended operations for a number of days whereas it held funding negotiations and explored strategic alternatives.
However at an all-hands assembly on Thursday, CEO Dan Hart advised workers operations would stop “for the foreseeable future,” US media reported on the time.
“Whereas we have now taken nice efforts to handle our monetary place and safe extra financing, we finally should do what’s finest for the enterprise,” Hart mentioned within the firm assertion on Tuesday.
“We imagine that the cutting-edge launch expertise that this workforce has created may have huge attraction to patrons as we proceed within the course of to promote the Firm.”
Based by Branson in 2017, the agency developed “a brand new and progressive methodology of launching satellites into orbit,” whereas “efficiently launching 33 satellites into their exact orbit,” Hart added.
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