- 23andMe filed for Chapter 11 bankruptcy and CEO Anne Wojcicki has stepped down.
- The DNA testing company faced challenges including a failed privatization attempt and a data breach.
- 23andMe will continue operating while a buyer is sought.
DNA testing company 23andMe filed for Chapter 11 bankruptcy protection and CEO Anne Wojcicki resigned on Sunday.
The San Fransisco-based firm, which became popular for its service where customers provide a saliva sample to analyze their ancestry and health risks, said it started the voluntary proceedings in the US Bankruptcy Court for the Eastern District of Missouri.
It will continue operating while a buyer is sought.
“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,” chair Mark Jensen said in a press release.
“We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities.”
It also announced that Wojcicki had resigned with immediate effect. She co-founded 23andMe in 2006 after a Wall Street career. Wojcicki was married to Google cofounder Sergey Brin from 2007 to 2015, and the company invested millions in the business.
Her late sister Susan Wojcicki was Google’s first marketing manager and went on to become CEO of YouTube before stepping down in 2023. Susan died from cancer the following year.
23andMe went public in June 2021 and was once valued at more than $6 billion. It never turned a profit and faced major hurdles in recent months.
In July 2024, Wojcicki tried to take the company private, but a special committee rejected the proposal. She made another attempt earlier this month that was also rejected.
In September, 23andMe agreed to a $30 million settlement in a class-action suit after hackers compromised the data of some users. A week later, all seven independent board directors resigned. 23andMe laid off about 40% of its staff in November to cut costs.
In an SEC filing the same month, the company said it had debts of $2.3 billion, about $126 million in cash and cash equivalents and would need additional liquidity.
Joe Selsavage, the chief financial officer, has taken over as interim CEO. Matt Kvarda of Alvarez & Marsal was appointed chief restructuring officer.
Wojcicki will remain on the board.
23andMe did not immediately respond to a request for comment.
