- Bankrupt rocket company Virgin Orbit sold its assets and equipment to Rocket Lab, Stratolaunch and Vast’s Launcher in a bankruptcy auction, and will cease operations.
- Virgin Orbit filed for bankruptcy protection on April 4 after the company failed to secure a funding lifeline and laid off nearly all of its workforce.
- Spun off from Virgin Galactic in 2017 by founder Sir Richard Branson, Virgin Orbit has flown several missions, but difficulty raising funds and slow execution led to the company’s closure.
The modified Boeing 747 plane, named “Cosmic Girl”, will take off from Spaceport Cornwall in the southwest of England.
Hugh Hastings/Stringer/Getty Images
Bankrupt rocket company Virgin Orbit is closing its doors, after selling its facility leases and equipment to a trio of aerospace companies at an auction, the company confirmed on Tuesday.
“As Virgin Orbit embarks on this path, management and employees would like to express their deep appreciation to all stakeholders,” the company said in a statement.
“Virgin Orbit’s legacy in the space industry will be forever remembered. Its breakthrough technologies, relentless pursuit of excellence and unwavering commitment to pushing the boundaries of air launch have left an indelible mark on the world. ‘industry,’ the company added.
Spun off from Virgin Galactic in 2017 by founder Sir Richard Branson, Virgin Orbit reached rarefied air by performing multiple missions. But difficulty raising funds and slow execution drove the once multi-billion dollar company into bankruptcy and ultimately closure.
The rocket for the company’s second demonstration mission is undergoing final assembly at its factory in Long Beach, California.
pristine orbit
Monday’s bidding is about $36 million in total. The approximately six Virgin Orbit rockets that were in various stages of manufacturing assembly, and its intellectual property, have yet to be sold, a Virgin Orbit spokesperson confirmed.
Rocket Lab successfully bid $16.1 million for the company’s headquarters in Long Beach, Calif., which measures approximately 140,000 square feet, the spokesperson said. Although founded in New Zealand, Rocket Lab was already a neighbor of Virgin Orbit, with headquarters and facilities in the Long Beach area. Additionally, the Rocket Lab purchase includes assets such as 3D printers and a specialized tank welding machine.
Stratolaunch has won its $17 million “hunting horse” bid for Virgin Orbit’s 747 jet. A spokesperson for Stratolaunch, in a statement to CNBC, said the company is “continuously evaluating ways to increase our ability to meet the imperative to test hypersonic technologies via forward flight demonstrations.”
“We will share more information about the sale as it becomes available,” Stratolaunch noted.
Launcher, a subsidiary of Vast Space, is buying the company’s facilities in Mojave, Calif., along with some machinery, equipment and inventory, for $2.7 million. Virgin Orbit’s Mojave leases include infrastructure such as rocket engine test beds and an aircraft hangar.
A company in liquidation, Inliper, buys the company’s office equipment for $650,000.
Rocket Lab and Launcher did not immediately respond to CNBC’s requests for comment.
Earlier in the bankruptcy process, Virgin Orbit accepted the terms of Stratolaunch’s offer to buy the 747 “Cosmic Girl” jet and other aviation assets. Stratolaunch developed its own airborne system, the world’s largest aircraft called “Roc”, as a platform for hypersonic flight testing.
Virgin Orbit filed for bankruptcy protection on April 4 after the company failed to secure a funding lifeline and laid off nearly all of its workforce. The auction result falls short of Virgin Orbit’s goal in the Chapter 11 bankruptcy process, which was to find a wholesale buyer who would keep the company’s assets and intellectual property intact.
The bankruptcy court must approve the sales in a hearing Wednesday at 2 p.m. ET.