Cornish small businesses are suffering thousands of pounds in losses following the sudden collapse of Virgin Orbit
Cornish small businesses are suffering thousands of pounds in losses following the sudden collapse of Virgin Orbit.
Sir Richard Branson’s satellite launch company filed for Chapter 11 bankruptcy in the US this month, dashing any hopes it could become a mainstay on the Cornish coast.
Virgin Orbit’s plan for the first space launch from British soil came to an abrupt halt in January when the mission from Newquay failed.
Court documents show that many of the creditors include local businesses, such as catering companies and hotels. Cornwall Council and the BBC are also mentioned.
Simon Dean, who runs All-pac Packaging Supplies in Newquay, owes £1,300. “I’ve sent emails to people, but they’re not getting any replies,” he said, adding that to chase the cash, he would have to go to Virgin Orbit’s headquarters in Long Beach, California. “We’re not big enough for that. I should hire someone else.’
Burnt: Simon Dean says his Newquay-based company, All-pac, is owed £1,300 by Virgin Orbit
There was great excitement leading up to the launch as locals were promised new jobs and investments.
Virgin Orbit CEO Dan Hart even told this newspaper that the company could move some of its production to England.
Unsurprisingly, its collapse deflated many.
“I feel let down because you’ve heard a lot of people say it would be good for the area and make a lot of noise,” Dean said.
“You get a name like Virgin and you don’t think it will be night flights. But they now owe thousands of pounds to a lot of people and Richard Branson just moves on. ‘
South West Hire and Sales is another company being hung out to dry by Virgin Orbit. Depot manager Callum Kirk said his Newquay branch owes about £3,000.
His emails to the company also went unanswered.
Virgin Orbit was contacted for comment.