23AndMe filed for Chapter 11 Bankruptcy Protection, and its co-founder and CEO resigned as a struggling genetic testing company continues to push for cost reductions.
The company said on Sunday it would attempt to sell “virtually all assets” through a court-approved restructuring plan.
The San Francisco-based company also said Anne Watchcchi would soon step down as effective CEO but would remain on the company’s board of directors. Her resignation comes weeks after the board committee rejected a non-binding acquisition proposal from Wojcicki.
23andme Holding Co.’s stock has reduced almost all of its value since last spring, falling below $1 in commercial trading on Monday.
The voluntary bankruptcy filing has filed months of disruption with a company that has struggled to find a profitable business model since it was published in 2021.
Last September, all independent directors resigned in a rare move after negotiations with Wojcicki, who was trying to keep the company private.
The company then announced in November that it would fire 40% of its workforce, or more than 200 employees, and cancel the treatment department.
In January, the board’s special committee said it was exploring strategic alternatives, including potential sales.
Board Chairman Mark Jensen said in a statement Sunday that the company determined that the sale of court supervision was “the best path to maximizing the value of the business.” He also said they hope it will help the company’s efforts to reduce costs and settle legal and rental liabilities.
Jensen also said, “We are committed to continuing to protect our customer data and being transparent about future management of user data, and data privacy is an important consideration in potential transactions.”
23AndMe plans to continue operating the business and raises $35 million in debtor funding from JMB Capital Partners.
Original issue: March 24, 2025, 12:19pm EDT
