Richard Branson's Virgin Orbit auctions remaining assets as company set to fold

Add WION as a Preferred Source

Virgin Orbit, the satellite launch company owned by billionaire Richard Branson will cease operations permanently, just months after filing for bankruptcy. The company, which aimed to send small satellites into space, revealed it was closing for good after auctioning its main assets for just over $36 million.

The auctioned asset sum managed by the California-based company is barely one per cent of the value it reached at its peak in late 2021 when Wall Street pegged it around $3.5 billion.

Rocket Lab, a growing launch start-up with an office across the road from Virgin Orbit's headquarters in California brought the company's rocket factory and equipment for $16.1 million. The converted 747 jets were sold to Startolaunch - the world's biggest aircraft maker for an astonishingly low $17 million.

The company's launch site and its lease in the Mojave desert were bought for $2.7 million by a third space company, Launcher Inc.

ALSO READ | Richard Branson's Virgin Orbit files for bankruptcy

Legacy will be remembered: Virgin Orbit

In a statement about the impending closure, Virgin Orbit thanked its employees and stakeholders and said the company will be remembered 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 maximises value for the estate and minimizes the remaining duration of the Company’s restructuring," it added.

WATCH |Richard Branson's Virgin orbit files for Chapter 11 bankruptcy

Branson's dream goes bust

Prior to filing bankruptcy in the US Bankruptcy Court for the District of Delaware, the company laid off roughly 85 per cent of its 750 employees. According to reports, the remaining employees will be laid off within the next week.

"At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalise an efficient and value-maximising sale," Virgin Orbit CEO Dan Hart said in a statement at the time.

Virgin Orbit went public in 2021 as an extension of Branson's space tourism firm Virgin Galactic, which was formed in 2017. The company undertook its sixth mission in January with its centrepiece LauncherOne rocket. However, the rocket launch was a catastrophe as it failed to reach orbit while the payload aboard plunged into the ocean.

(With inputs from agencies)

WATCH WION LIVE HERE: