Saudi Press

Saudi Arabia and the world
Saturday, Jun 21, 2025

Virgin Orbit: Richard Branson's rocket firm files for bankruptcy

Virgin Orbit: Richard Branson's rocket firm files for bankruptcy

British billionaire Sir Richard Branson's rocket company Virgin Orbit has filed for bankruptcy in the US after failing to secure new investment.

The satellite launch company halted operations weeks ago but it hopes to find a buyer for the business.

The company, based in California, announced last week that it would cut 85% of its 750-strong workforce.

Earlier this year, a Virgin Orbit rocket failed to complete its first-ever satellite launch from UK soil.

Virgin Orbit's boss Dan Hart said that although the company had "taken great efforts" to address its finances and secure more funding, "we ultimately must do what is best for the business."

He said that Virgin Orbit will now concentrate on finding a buyer for the business "to provide clarity on the future of the company to its customers, vendors, and employees".

Virgin Orbit was founded in 2017 and is a spin-off from Sir Richard's space tourism company Virgin Galactic.

It launches rockets from beneath modified Boeing 747 planes to send satellites into space.

But in January, an attempt to send a satellite into orbit from the UK for the first time failed because a rocket fuel filter had become dislodged, causing one of the engines to overheat.

The mission had been billed as a milestone for UK space exploration.

It was hoped it would mark a major step in helping to turn the country into a global player - from manufacturing satellites to building rockets and creating new spaceports.

Virgin Orbit, which is mostly owned by Virgin Group, scrambled 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 $153.5m as of September last year.

On Tuesday, the company said one of its sister companies - Virgin Investments - would provide $31.6m in new money to help Virgin Orbit through the process of finding a buyer.

It has filed for what is known as Chapter 11 bankruptcy protection in the US. This allows a business to keep operating and address its financial issues while providing protection against creditors who are owed money.

Mr Hart said despite the financial problems, he was confident the company had a "wide appeal" to a new owner because its team had created "cutting edge launch technology".

But Danni Hewson, head of financial analysis at investment firm AJ Bell, said the company's failed launch mission from the UK was "not the best advert" for its technology.

"Neither is Virgin Orbit's collapse the best advert for the space investment theme," she added.

"This industry may have significant potential at some point in the unknown future but investors tempted to reach for the stars have only had their fingers burned so far."

Sir Richard is one of a very small group of billionaires who have expanded their business empires into launching satellites and attempts to pioneer commercial space travel.

The others include Jeff Bezos, founder of online retailer Amazon who set up his space company, Blue Origin, as well as Twitter and Tesla owner Elon Musk, who founded SpaceX.

Jeff Bezos was part of the crew who completed a spaceflight for his company Blue Origin


Sir Richard and Virgin Group have invested more than $1bn in the business in a quest to launch satellites through Virgin Orbit but also to develop reusable "space planes" to take tourists on brief trips to sub-orbital space.

Virgin Galactic has already started selling tickets for $250,000 for these journeys and celebrities such as pop star Justin Bieber have signed up.

But the main players in the "billionaire space race" have also faced criticism for what some see as offering joy rides for the super-wealthy at a time when countries across the globe are being impacted by climate change.

However, Mr Bezos has insisted his space exploration is partly an environmental mission to "to take all heavy industry, all polluting industry and move it into space, and keep Earth as this beautiful gem of a planet that it is", he previously said.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Black Box Recovered from Air India Crash Site
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
×