• by Danielle Oster , March 24, 2025

DNA testing company 23andMe has filed for bankruptcy. Its co-founder Anne Wojcicki has also resigned from her role as CEO, following her failed bid to acquire outstanding shares in the company and take it private.

23andMe said it has initiated voluntary Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the Eastern District of Missouri, in order to facilitate a sale process intended to maximize its value. The company stated that it “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.”

“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,” said Mark Jensen, chair of 23andMe’s special committee of the board of directors. “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.”

Wojcicki will continue serving as a member of the company’s board of directors, while 23andMe Chief Financial and Accounting Officer Joe Selsavage will take on the additional role of interim CEO, and appointed ALvarez & Marsal Managing director Matt Kvarda as Chief Restructuring Officer.

23andMe went public back in June of 2021, through a deal with Richard Branson’s VC Acquisition Corp. valuing the company at around $3.5 billion. The company’s valuation subsequently grew to a peak of nearly $6 billion, even though 23andMe has yet to generate a profit.

In recent years, the company's value has plummeted, amidst its continued lack of profitability, as well as user privacy concerns – heightened by a 2023 data breach. That breach reportedly involved data for some 7 million users of the service, including personal information such as names, addresses, and genetic background being sold by hackers on the dark web.

The move appears to conclude a protracted dispute between Wojcicki and the Special Committee over the co-founder’s previously expressed plans to take the company private.