Virgin Orbit, the satellite launch company owned by billionaire Richard Branson, has announced its permanent closure, barely months after declaring bankruptcy. The company, which sought to launch small satellites into space, announced its permanent closure after auctioning off its key assets for just over $36 million.
The auctioned asset total maintained by the California-based corporation is less than 1% of its peak value in late 2021 when Wall Street estimated it to be around $3.5 billion.
Rocket Lab, a rising launch firm with an office across the street from Virgin Orbit’s headquarters in California, paid $16.1 million for the company’s rocket factory and equipment. The converted 747 jets were sold for an amazingly low $17 million to Startolaunch, the world’s largest aircraft manufacturer.
Launcher Inc., a third space business, purchased the company’s launch site and lease in the Mojave desert for $2.7 million.
Virgin Orbit’s legacy will be remembered
Virgin Orbit praised its staff and stakeholders in a statement regarding the upcoming closure, saying the company will be recognized for its “groundbreaking technologies.”
“Throughout its history, Virgin Orbit has been at the forefront of innovation and has made substantial contributions to the field of commercial rocket launch. Virgin Orbit’s legacy in the space industry will forever be remembered,” the company said.
“The combined total proceeds were determined by a rigorous and competitive auction which maximizes value for the estate and minimizes the remaining duration of the Company’s restructuring,” it added.
Branson’s dream fails.
Prior to filing for bankruptcy in the United States Bankruptcy Court for the District of Delaware, the company lay off almost 85% of its 750 employees. The remaining staff, according to reports, will be laid off within the following week.
“At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale,” Virgin Orbit CEO Dan Hart said in a statement at the time.
Virgin Orbit went public in 2021 as an outgrowth of Branson’s 2017 space tourism enterprise Virgin Galactic. In January, the company launched its sixth flight using its centerpiece LauncherOne rocket. The rocket launch, however, was a disaster because it failed to reach orbit and the payload aboard sank into the ocean.