Virgin Orbit has filed for bankruptcy after the satellite launch company failed to secure the long-term funding needed to help it recover from its rocket failure from British soil in January.

Sir Richard Branson has injected another $31.6m (£25.4m) into the California-based company to help fund a sale through the bankruptcy procedure.

This is on top of the $11m he provided for the business last week to cover severance payments after it announced it was laying off 85pc of its 750 employees.

The company listed assets of about $243m and its total debt at $153.5m as of September 30 as it filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware.

It marks a rapid unravelling for the business, which in January completed a high-profile – though ultimately unsuccessful – launch from Cornwall. The failure led to a collapse in the company's share price.

The business had never turned a profit since going public in 2021.

A Virgin Group statement released following the bankruptcy filing said: “In just a few short years, Virgin Orbit has achieved much of what it set out to do having successfully led multiple missions to space launching 33 satellites into their desired orbit. The team has created a light, fast, flexible, and affordable satellite launch system and we are proud of all the team has strived for.”

“Richard Branson and the Virgin Group have supported Virgin Orbit over the long term, investing more than $1bn in the company, including $60m since November 2022. However, this significant funding was not enough to counter the strong headwinds and liquidity challenges Virgin Orbit continues to face.”

Virgin Orbit chief executive Dan Hart said: “At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximising sale.

“I'm incredibly grateful and proud of every one of our teammates, both for the pioneering spirit of innovation they've embodied and for their patience and professionalism as we've managed through this difficult time.”