Richard Branson's Virgin Orbit rocket firm files for bankruptcy
Business InsiderDec 26, 2022
The Facts
After filing for bankruptcy nearly two months ago, California-based satellite launch company Virgin Orbit has sold off its key assets for over $35M to three aerospace companies, thereby ending its operations.
The rocket company founded by Sir Richard Branson was forced to liquidate its assets for a fraction of the £3B valuation set out two years ago. Virgin Orbit filed for bankruptcy protection in the US and laid off most of its employees, but the company was still forced to dissolve.
The Spin
Narrative A
Virgin Orbit’s failure was neither sad nor surprising, as its leadership doomed the business before it even started. Branson and Virgin Orbit’s executives simply tried to enter a market in which there was no demand, meaning its future relied simply on the hope that either the UK or US government would buy the company. Mismanagement plagued Virgin Orbit while it bled millions of dollars. Hopefully, this is a clear warning for other companies looking to enter the space industry.
Narrative B
While some may lament the demise of Virgin Orbit, its sibling company Virgin Galactic is there to fill the void as it embarks on its first mission in two years. Branson’s company has worked tirelessly to update its infrastructure and will look to bring flights to the edge of space on a daily basis. One door’s closing means the opening of another, and now Virgin Galactic will receive more attention and resources to aid its advancement in the space industry.
