Virgin Orbit Sells Assets, Closes Operations

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.¹
• 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.²
• Virgin Orbit was able to fetch $17M for its widely-recognized “Cosmic Girl” — a modified Boeing 747 used for rocket launching — earlier this week, as launch companies Stratolaunch, Rocket Lab, and Launch bought up its main assets.³
• The company was never able to recover from its failed attempt to launch the UK’s first satellite into orbit in January. The milestone mission from Cornwall reached space, but fell short of its target orbit due to the dislodging of a small fuel filter.⁴
• The failed launch dimmed expectations for a new space industry in the UK. Though another rocket launch from Spaceport Cornwall isn’t expected in the near future, Britain is reportedly still committed to becoming Europe’s leading small satellite provider by 2030.⁴
• Virgin Orbit is an offshoot of Branson’s Virgin Galactic, and was established in 2017 with the aim of revolutionizing the space industry. While it managed to fly multiple missions, it ran out of funding and was too slow in its execution to remain viable.⁵

Sources: ¹Space.com, ²Express.co.uk, ³Interestingengineering, ⁴BBC News and ⁵CNBC.

Narratives

• Narrative A, as provided by Ars Technica. 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, as provided by TechCrunch. 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.