Richard Branson's rocket company Virgin Orbit files for bankruptcy

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Virgin Orbit, the rocket company founded by British billionaire Richard Branson in 2017, has filed for Chapter 11 bankruptcy.

The decision comes after a failed satellite launch in January, difficulties raising funding and dramatic staff reductions. The company says it will continue doing business as it searches for a buyer.

“While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business,” reads a statement from CEO Dan Hart.

California-based Virgin Orbit in January failed to complete the first satellite launch from Western Europe after a fuel feedline dislodged and caused an engine to overheat.

Two months later, Virgin Orbit paused operations amid reports that it furloughed the majority of its staff as it sought funding. The company went on to say that it would cut 675 jobs, or about 85% of its staff, to reduce expenses after failing to secure funding.

Virgin Orbit’s sister company, Virgin Investments, has committed $31.6 million in financing to help Virgin Orbit continue operations as it looks for a new owner.

The company said it is focused on a “swift conclusion” to the sales process.