Virgin Orbit, the satellite launch company founded by Richard Branson, filed for Chapter 11 bankruptcy and said it would sell the business in a statement Tuesday from the firm. The California-based company said last week it was laying off 85 percent of its workforce — about 675 people — to cut costs for failing to secure adequate funding.

Earlier this year, Virgin Orbit suffered a major setback when its first attempt to launch a rocket from British soil into space failed. The company, together with the British Space Agency and the Cornwall Spaceport, has set up a mission to launch nine satellites into space.

The firm said on Tuesday it had “initiated voluntary proceedings … under Section 11 of the U.S. Bankruptcy Code to sell the business,” and plans to use the process “to maximize the value of the business and its assets.” Last month, Virgin Orbit suspended operations for a few days as it negotiated financing and explored strategic options.

But at a general meeting on Thursday, CEO Dan Hart told his employees that operations would be suspended “in the near future,” according to US media reports at the time.

“While we are making great efforts to improve our financial position and secure additional funding, we ultimately have to do what’s best for the business,” Hart said in a statement from the company on Tuesday. Said.

“As we continue to sell the company, we believe the advanced startup technology this team has built will have broad appeal to buyers.”

Hart added that the company, founded by Branson in 2017, has developed “a new and innovative method for placing satellites into orbit” and has “successfully placed 33 satellites in their full orbits.” Virgin Orbit shares fell 3 percent to 19 cents on the New York Stock Exchange Monday night.