Virgin Orbit (VORB), the space company backed by British entrepreneur Sir Richard Branson, has officially filed for Chapter 11 bankruptcy protection from its creditors.
News of the bankruptcy filing comes a week after the satellite company announced that it was ceasing operations and laying off most of its staff.
Virgin Orbit failed to secure the long-term financing needed to continue operations. Branson had refused to put anymore money into the company after it suffered repeated launch failures over the past year.
The company made the bankruptcy filing in the U.S. Bankruptcy Court for the District of Delaware seeking a sale of its assets.
In court, Virgin Orbit listed assets of $243 million U.S. and debts of $153.5 million U.S.
Virgin Orbit went public in 2021 through a special purpose acquisition company (SPAC) deal, raising $255 million U.S., which was less than had been anticipated.
A Virgin Orbit satellite launch this past January failed to reach orbit and ended up crashing into the ocean, shaking investor confidence in the company.
Virgin Orbit tried to find new financing after the January launch failure but failed to do so. On March 15, the company stopped operations and fired nearly all its staff to conserve cash.
Branson’s Virgin Group, which owned roughly 75% of the satellite launch company, said it had invested over $1 billion U.S. in Virgin Orbit since its inception.
Virgin Orbit’s stock has declined 97% in the last 12 months to trade at 19 cents U.S. per share.