Virgin Orbit, the satellite launch company owned by billionaire Richard Branson’s Virgin Group, has filed for Chapter 11 bankruptcy protection in the United States. The filing comes after months of trying to secure a funding lifeline that would have allowed it to continue operations.
The company had been facing financial difficulties since early 2020 due to the pandemic and its effects on global markets. In recent weeks, Virgin Orbit had been in talks with potential investors but was unable to reach an agreement which led them towards bankruptcy proceedings as their only option.
This is not expected to affect any of Virgin Group’s other businesses like airlines or cruise ships as they are all separate entities from each other and this decision will not impact them financially in any way. However, it does mean that over 200 employees at Virgin Orbit may be laid off if no investor is found during these proceedings who can provide enough capital for continued operations at least until more stable times come around again soon.
Virgin Orbit has expressed hope that someone will step up and invest so they can continue their mission of providing low-cost access into space while also helping create jobs within the industry itself – something which many people rely on right now more than ever before given current economic conditions worldwide.
Read more at CNBC
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