Branson exploring Virgin Cruise brand

Richard Branson, whose innovative Virgin Atlantic airline shook up the skies when it was launched in the 1980s, is exploring an extension of the Virgin brand into the cruise industry, according to Sky News Service.

The U.K.-based television outlet is reporting that Branson has engaged Allen Co. to “oversee development of a cruise operation” that would be called Virgin Cruises.

The Sky News report said the project is still at an early stage. It reported that Virgin executives and their advisers have already talked with banks about raising $1 billion in debt to finance acquisition of vessels. The plan also calls for raising about $700 million in an equity offering, Sky News reported.

Allen Co. is a New York investment banking boutique best known for arranging mergers and investments in the media and entertainment industries. Sky News said it has been working with Virgin Group on a number of potential leisure sector investments.

Virgin Group is the parent of Virgin Atlantic Airways. The first Virgin-branded hotel is scheduled to open in Chicago this year.

Virgin also sells cruises through its Virgin Holidays packaged-tour business and has been involved in record shops, mobile phone services and other industries.

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