The genetics testing company 23andMe has sought bankruptcy protection as part of efforts to facilitate its sale, according to confirmation from the U.S. based entity.
Following years of challenges with its business approach, 23andMe announced it had initiated voluntary Chapter 11 filings in the U.S. Bankruptcy Court for the Eastern District of Missouri.
According to Mark Jensen, who heads the company’s board of directors, this choice was made “in order to streamline the sales process and maximize the worth of the enterprise.”
Late Sunday saw the company issue a statement announcing that co-founder Anne Wojcicki had resigned from her position as CEO.
Wojcicki, who co-founded the company back in 2006, expressed her disappointment via X about the bankruptcy ruling. However, she also stated that she intends to submit a bid for the business.
“If I am fortunate enough to secure the company’s assets through the restructuring process, I remain committed to our long-term vision of being a global leader in genetics,” she said.
23andMe, known primarily for its at-home DNA testing kit, reached a peak valuation of $6 billion (€5.5 billion) in the past. Recently though, its worth has significantly decreased, partially because of a decline in customer orders.
In 2023, approximately half of the over 15 million clients of the California-based company experienced a data breach, sparking worries about the protection of the genetic information they store.
These concerns have persisted, as evidenced by California Attorney General Rob Bonta issuing a consumer warning about the firm on Friday.
Bonta stated that California boasts strong privacy regulations enabling consumers to gain control and ask companies to remove their genetic information.
“Considering 23andMe’s reported financial difficulties, I advise Californians to exercise their rights and request that the company deletes their data and destroys any genetic materials they possess,” he stated.
In November, the firm announced it would be terminating 200 employees, which accounted for approximately 40% of its total staff.
Upon Wojcicki’s departure, Joe Selsavage, who currently serves as the chief financial officer at 23andMe, will take over as the interim CEO of the company.