23andMe has filed for Chapter 11 bankruptcy protection and its co-founder and CEO has resigned as the struggling genetic testing company continues its push to cut costs.
The company said Sunday that it will look to sell “substantially all of its assets” through a court-approved reorganization plan.
The San Francisco-based company also said Anne Wojcicki had resigned as CEO effective immediately but would remain on the company’s board. Her resignation comes a couple weeks after a board committee had rejected a nonbinding acquisition proposal from Wojcicki.
Attorneys general in several states, including Florida Attorney General James Uthmeier, issued a consumer alert regarding the bankruptcy filing. 23andMe is a direct-to-consumer genetic testing company that collects and analyzes the most sensitive information about individuals: their genetic code.
"Consumer privacy is paramount, especially when it concerns an individual’s DNA. Floridians are right to be concerned about where their information is held," said Uthmeier. "We are offering tips to Floridians who wish to proactively protect their data by requesting the destruction of their test sample and deleting their accounts amid 23andMe’s bankruptcy."
California's Rob Bonta issued alerts on the bankruptcy. Bonta urged Californians to request that the company delete their genetic data.
“Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company.”
Shares of 23andMe Holding Co., which have shed nearly all their value since last spring, plunged below $1 in premarket trading Monday.
The voluntary bankruptcy filing caps months of turmoil for the company, which has struggled to find a profitable business model since going public in 2021.
Last September, all of its independent directors resigned in a rare move following negotiations with Wojcicki, who had been trying to take the company private.
The company then announced in November that it would lay off 40% of its workforce, or more than 200 employees, and discontinue its therapeutics division.
In January, the board’s special committee said it was exploring strategic alternatives, including a possible sale.
Board Chair Mark Jensen said in a statement Sunday that the company has determined that a court-supervised sale was “the best path forward to maximize the value of the business.” He said they also expect it to help the company’s efforts to cut costs and also resolve legal and leasehold liabilities.
Jensen also said, “We are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction.”
23andMe plans to continue operating its business and has $35 million in debtor-in-possession financing from JMB Capital Partners.
According to the company's press release, 23andMe intends to continue operating its business in the ordinary course throughout the sale process, with no changes to how it stores, manages, or protects customer data.
To Delete Genetic Data from 23andMe
- Log into your 23andMe account on their website.
- Go to the "Settings" section of your profile.
- Scroll to a section labeled "23andMe Data" at the bottom of the page.
- Click "View" next to "23andMe Data."
- Download your data: If you want a copy of your genetic data for personal storage, choose the option to download it to your device before proceeding.
- Scroll to the "Delete Data" section.
- Click "Permanently Delete Data."
- Confirm your request: You'll receive an email from 23andMe; follow the link in the email to confirm your deletion request.
To Destroy Your 23andMe Test Sample
If you previously opted to have your saliva sample and DNA stored by 23andMe but want to change that preference, you can do so from your account settings page under "Preferences."
To Revoke Permission for Your Genetic Data to be Used for Research
If you previously consented to 23andMe and third-party researchers to use your genetic data and sample for research, you may withdraw consent from the account settings page under "Research and Product Consents."