Virgin Orbit shuts down
Unable to secure new funding, the managers of Virgin Orbit have shuttered the company, possibly forever.
Virgin Orbit is ceasing operations “for the foreseeable future” after failing to secure a funding lifeline, CEO Dan Hart told employees during an all-hands meeting Thursday afternoon. The company will lay off nearly all of its workforce. “Unfortunately, we’ve not been able to secure the funding to provide a clear path for this company,” Hart said, according to audio of the 5 p.m. ET meeting obtained by CNBC.
The layoffs include all but 100 positions, about 85% of its workforce.
The company was killed because the UK’s Civil Aviation Authority (CAA) took an extra six months approving a launch license, during which the company could launch nothing and thus make no money. Lacking revenue, it ran out of cash. If the company goes into bankruptcy, this detail is most intriguing:
Branson has first priority over Virgin Orbit’s assets, as the company raised $60 million in debt from the investment arm of Virgin Group.
In other words, Branson will be able to walk off with everything, and even resurrect the company as his own, for pennies on the dollar. If he does, I guarantee our bankrupt mainstream press will shower him with praise, calling him a hero.
Unable to secure new funding, the managers of Virgin Orbit have shuttered the company, possibly forever.
Virgin Orbit is ceasing operations “for the foreseeable future” after failing to secure a funding lifeline, CEO Dan Hart told employees during an all-hands meeting Thursday afternoon. The company will lay off nearly all of its workforce. “Unfortunately, we’ve not been able to secure the funding to provide a clear path for this company,” Hart said, according to audio of the 5 p.m. ET meeting obtained by CNBC.
The layoffs include all but 100 positions, about 85% of its workforce.
The company was killed because the UK’s Civil Aviation Authority (CAA) took an extra six months approving a launch license, during which the company could launch nothing and thus make no money. Lacking revenue, it ran out of cash. If the company goes into bankruptcy, this detail is most intriguing:
Branson has first priority over Virgin Orbit’s assets, as the company raised $60 million in debt from the investment arm of Virgin Group.
In other words, Branson will be able to walk off with everything, and even resurrect the company as his own, for pennies on the dollar. If he does, I guarantee our bankrupt mainstream press will shower him with praise, calling him a hero.