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Genetic Testing Giant 23andMe Files for Bankruptcy
DNA testing company 23andMe, known for its saliva-based ancestry kits, filed for Chapter 11 bankruptcy protection on Sunday. The move comes as the $50 million company seeks a buyer and grapples with recent financial struggles.
While the company assures customers that operations will continue uninterrupted during the bankruptcy proceedings, concerns have arisen regarding the security of the vast amount of personal genetic data 23andMe holds. California Attorney General Rob Bonta issued a consumer alert reminding Californians of their right to demand the deletion of their data, destruction of their samples, and revocation of research permissions. 23andMe maintains that there will be no changes to how customer data is stored, managed, or protected.
The bankruptcy filing follows a turbulent period for the company. Last November, 23andMe laid off 40% of its workforce.
More recently, co-founder and CEO Anne Wojcicki resigned, though she stated her intention to bid on the company herself. CFO Joe Selsavage will serve as interim CEO.
23andMe has secured $35 million in debtor-in-possession financing to support ongoing operations during the sale process. The company reported both assets and liabilities between $100 million and $500 million.
The bankruptcy comes just a month after 23andMe agreed to a $30 million settlement in a lawsuit over a 2023 data breach affecting 6.9 million customers. The settlement also includes three years of security monitoring.
In a statement, Mark Jensen, Chair of the Special Committee of the Board of Directors, expressed gratitude for employees’ dedication and emphasized the company’s commitment to both employee support and data privacy throughout the bankruptcy and sale process.