Genetic testing company 23andMe is navigating rough waters as it initiated a voluntary Chapter 11 bankruptcy process. In a move that they say aims to "maximize stakeholder value," the company is entering court-supervised sale proceedings. 23andMe, based in Sunnyvale, California, will conduct its operations normally while the sale process begins, according to 23andMe.
Amid the bankruptcy developments, 23andMe's co-founder Anne Wojcicki has stepped down from her position as CEO to buy the company potentially. Wojcicki stated in a social media post that although she is disappointed with the turn of events, her belief in the company’s mission is strong enough to make her consider actively bidding for its assets. Despite the challenging path that the company has had to traverse, she remains committed to advocating for consumer rights and transparency in genetic data.
The 23andMe Special Committee released news today indicating their plan to take the company through the Chapter 11 process. While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company and I intend to be a bidder. I have…
— Anne Wojcicki (@annewoj23) March 24, 2025
The decision to file for bankruptcy follows 23andMe's in-depth evaluation of strategic alternatives, as explained by Mark Jensen, Chair and member of the Special Committee of the Board of Directors. "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," Jensen said in a statement obtained by 23andMe's press release.
The company’s legal and financial struggles have been significantly compounded by an October 2023 cyber incident that 23andMe hopes to resolve through bankruptcy proceedings. The company has received a commitment of up to $35 million in debtor-in-possession financing from JMB Capital Partners, which, following court approval, should help to stabilize the business while they work to iron out their restructuring plan fully.
In light of this restructuring, Wojcicki has decided to resign and participate independently in the bidding process. The company looks to shed some of its financial burdens by rejecting numerous contracts, including its real estate leases. With a nod to the company’s history and role, Wojcicki reminisced in her post about the beginnings 23andMe and the industry it spearheaded, expressing gratitude to the customers who opted in to research and fueled advancements in the field. "Nineteen years ago, when I co-founded 23andMe, the direct to consumer industry did not exist and most people had no idea why they would ever want to see their genome," Wojcicki noted in her statement.
