23andMe has filed for Chapter 11 bankruptcy protection, seeking to sell its assets through a court-approved reorganization. This follows the resignation of co-founder Anne Wojcicki as CEO, though she remains on the board. The company’s stock plummeted below $1 in premarket trading, reflecting its significant value decline since last spring.
The bankruptcy filing comes after months of instability, including the resignation of all independent directors in September, a 40% workforce reduction in November, and the discontinuation of its therapeutics division.
In January, the board began exploring strategic alternatives, including a potential sale, ultimately leading to the current bankruptcy proceedings. This situation creates uncertainty for the many individuals who entrusted 23andMe with their personal genetic information.
Board Chair Mark Jensen stated that a court-supervised sale is the “best path forward” to maximize value and address cost-cutting and legal liabilities.
He emphasized the company’s commitment to safeguarding customer data, which will be a key consideration in any transaction, recognizing the sensitivity of the information held.
23andMe will continue operations with $35 million in debtor-in-possession financing from JMB Capital Partners.
