Virgin Orbit, the satellite launch company owned by billionaire Richard Branson, will permanently cease operations after filing for bankruptcy earlier this year. The company recently announced its decision to close for good after auctioning off its main assets for a little over $36 million.
This amount is a mere fraction of the company’s peak valuation in late 2021, when it was estimated at around $3.5 billion by Wall Street. Rocket Lab, a growing launch start-up located near Virgin Orbit’s headquarters, purchased the company’s rocket factory and equipment for $16.1 million. Additionally, the converted 747 jets were sold to Startolaunch, the world’s largest aircraft manufacturer, for a surprisingly low $17 million. The launch site and lease in the Mojave Desert were acquired by another space company, Launcher Inc., for $2.7 million.
In its statement regarding the closure, Virgin Orbit expressed gratitude to its employees and stakeholders and highlighted its contributions to groundbreaking technologies in the space industry. The company acknowledged that its legacy would be remembered despite the closure.
The proceeds from the auction were determined through a competitive process aimed at maximizing value for the estate and expediting the company’s restructuring. Prior to filing for bankruptcy, Virgin Orbit had already laid off approximately 85 percent of its workforce of 750 employees. The remaining employees are expected to be laid off within the coming week.
Virgin Orbit, which became a publicly traded company in 2021 as an extension of Branson’s space tourism firm Virgin Galactic, encountered a significant setback in January when its sixth mission failed. The LauncherOne rocket failed to reach orbit, resulting in the payload plunging into the ocean.
Overall, the company’s financial difficulties and inability to achieve its objectives ultimately led to the decision to cease operations permanently.
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