This week has not started well for Sir Richard Branson’s Virgin group of companies, with satellite rocket launch outfit Virgin Orbit filing for bankruptcy and fibre broadband network Virgin Media O2 going on the fritz.
In fact, it’s not been that great a few years for the constellation of corporations that have paid to use the Virgin name that Branson first slapped on his record label in the early 1970s.
Airline Virgin Atlantic teetered close to collapse during the pandemic, sacking over 3,000 staff and making a despairing plea for government handouts, before administration was averted with a £1.2bn rescue deal in September 2020, while gym chain Virgin Active also was pushed to the edge by Covid and in the most recent set of results its auditors again warned that its ability to stay afloat.
Virgin Galactic Holdings Inc (NYSE:SPCE), the space tourism sibling of Virgin Orbit Holdings Inc, stock soared after Branson’s first trip to the edge of space in 2021 but quickly plummeted back to Earth after it immediately announced more cash was needed, Branson sold a large stake and a "potential manufacturing defect" emerged.
What’s more, on London’s junior market, Virgin Wines UK PLC (AIM:VINO) issued a profit warning in recent weeks amid tough times for consumer-facing businesses.
Branson, who settled on the Virgin name after the failure of his first business, Student magazine, has launched more than 400 companies using the brand.
Many of them have been the sort of ignominious failures that would have toppled a less self-confident character: Virgin Cola, Virgin Vodka, Virgin Brides (yes really, it was a wedding dress retailer), Virgin Digital, Virgin Racing F1 team, Virgin Vie (cosmetics), Virgin Cars, Virgin Clothing and Virgin Trains, which lost its west coast franchise in 2019.
It looks like Virgin Orbit, 75% owned by the Virgin Investments arm of Branson's Virgin Group, is poised to join this list.
Branson’s other space company, Virgin Galactic, 11.9% owned by Virgin Group, has had its wobbles and last month reported growing losses as it ramps up towards a decisive few months ahead, with first commercial flights pencilled in to begin in the coming quarter after a frustrating few years of delays.
Many of the other high-street businesses sporting the bright red logo are going relatively strong, including Virgin Money UK PLC (LSE:VMUK) bank, though it was forced to deny reports during the pandemic that it was looking to drop the brand after an inglorious row over whether the company should receive government support given the fact it is half-owned by a billionaire.
Virgin Money, like many of the firms bearing the brand, is not owned by Virgin Group, but rather forks out £11-12mln a year in licence fees to use the name, with Branson's vehicle having long sold its stake.
Many of the others pay a royalty too, with its last annual accounts showing this line of business was remaining healthy in 2020, with Virgin Enterprises, which takes care of the “management, protection and development” of the brand, increasing the dividend it paid to UK parent Virgin Holdings from £25mln to £30mln.
While he owns half of the transatlantic airline, Branson does not own a stake in the online wine seller or UK internet provider, which were bought out from the Virgin Group several years ago.
This is a common Virgin model, with other lesser brands, ranging from Virgin Voyages, Virgin Mobile, Virgin Books, Virgin Bet, Virgin Casino and Virgin Games potential seeking sales in future.
But with the brand of chutzpah who cites lines like - “ever failed? No matter, try again, fail again, fail better” and “my mother drummed into me from an early age that I should not spend much time regretting the past” – it surely won’t be long before Branson’s beaming face is next seen promoting or selling another venture.
Though whether or not companies are going to continue wanting to pay big bucks to keep the Virgin name remains a different question entirely.