23andMe Files for Bankruptcy

​Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection, aiming to facilitate a court-supervised sale of its assets. This decision follows years of declining revenues and operational challenges. Co-founder and CEO Anne Wojcicki has resigned but will remain on the company's board. Chief Financial and Accounting Officer Joe Selsavage has been appointed as interim CEO to oversee the company's operations during this period.

In recent years, 23andMe faced several obstacles, including a significant data breach in 2023 that compromised the personal information of nearly 7 million users. This incident led to a class-action lawsuit and a $30 million settlement. Additionally, in September 2024, all seven independent directors resigned over strategic differences, and by November, the company laid off 40% of its workforce. These events, coupled with challenges in expanding into telehealth and drug development, contributed to the company's financial struggles.

As part of its restructuring efforts, 23andMe has secured $35 million in debtor-in-possession financing from JMB Capital Partners to support ongoing operations during the sale process. The company emphasizes its commitment to safeguarding customer data and maintaining transparency throughout this transition. Thus, 23andMe is seeking bankruptcy protection to facilitate a sale process, aiming to address its financial difficulties and secure a more stable future.

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