The genetic testing company 23andMe filed for Chapter 11 bankruptcy on March 23 amid its plans to sell itself. 23andMe files for bankruptcy in the US Bankruptcy Court for the Eastern District of Missouri to leverage the sale process and attain the highest value for the business. The company said it would continue business as usual until the sales process continued, and there would be no changes to how the company stores, handles or keeps customer data safe.
23andMe confirmed that they have received a debtor-in-possession (DIP) financing commitment of about $35 million, which will help them continue operating during the bidding process. Mark Jensen, Chair of the Board of Directors said, “After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business.”
23andMe Declares Bankruptcy
On Sunday, 23andMe filed for Chapter 11 Bankruptcy in US Court to proceed with the selling process. The company plans to sell most of its assets through a Chapter 11 process or Section 363 of the U.S. Bankruptcy Code. If the Court approves, the company, with help from an independent investment banker, will seek qualified bids over 45 days. If multiple bids are received, an auction will be held to get the best value.
Any buyer must follow laws on customer data and the deal will need regulatory approvals, including those under the Hart-Scott-Rodino Act and the Committee on Foreign Investment in the U.S.
23andMe CEO Anne Wojcicki Resigns Amid Bid Rejections
23andMe announced that Anne Wojcicki is stepping down as CEO, effective immediately, by mutual agreement with the Special Committee. She will remain on the company’s Board. The Board has appointed Joe Selsavage, the Chief Financial and Accounting Officer, as Interim CEO, and Matt Kvarda, a Managing Director at Alvarez & Marsal, as Chief Restructuring Officer. Additionally, Thomas Walper, a former Partner at Munger, Tolles & Olson LLP, has joined 23andMe’s Board and Special Committee as an independent director. Mr. Jensen has been named Chair of the Board.
What Led to 23andMe Filing for Bankruptcy?
Since merging with SPAC and going public in 2021, 23andMe has yet to make a profit. Its IPO price was $10, but in 2025, it hasn’t reached a $1 valuation. In September 2024, after months of conflict over CEO Anne Wojcicki’s plan to take 23andMe private, all seven independent board members resigned on Tuesday. This move likely marks the end for the struggling company famous for its DNA-testing kit.
Wojociciki believed that going back to private was the best decision for the company and said in an interview that “it will be fruitful for the company in coming time.” However, things didn’t go as planned and the company had to finally file for Chapter 11 bankruptcy.
Attorney General Issues Warning as 23andMe Plans Sale
As 23andMe looks to sell itself amid financial struggles, California’s Attorney General has issued a stark warning to its users saying “Delete Your Data.” With the company’s future uncertain, concerns have been raised about how customer data will be handled during the sale. Users are urged to be aware of potential risks as the company navigates this major shift.
