Genetic testing company 23andMe has filed for Chapter 11 bankruptcy due to a significant drop in demand for its ancestry kits.
The company has also struggled to recover from a 2023 data breach that severely impacted its reputation.
Once valued at nearly $6 billion 23andMe has faced ongoing financial challenges. In the first nine months of its current fiscal year, the company reported a 7% decline in revenue and $174 million in losses.
The company voluntarily filed for bankruptcy in Missouri, seeking court approval to sell most of its assets. It stated that this step is intended to “facilitate a sale process to maximize the value of its business.”
Leadership Changes
Alongside its bankruptcy filing, 23andMe’s co-founder and CEO, Anne Wojcicki, announced her resignation, effective immediately.
Wojcicki attempted to take the company private but was unsuccessful. She will, however, remain on the board of directors.
During this transition, Joe Selsavage, the company’s Chief Financial Officer (CFO), will serve as interim CEO. Despite the bankruptcy filing, the company intends to continue operations throughout the sale process.
What Is 23andMe?
Founded in San Francisco, 23andMe Holding Co. is a personal genomics company with over 15 million customers worldwide. It went public in 2021.
