23andMe Files for Chapter 11 Bankruptcy; CEO Resigns to Pursue Independent Bid
Krissy Vann | Host, All Things Fitness and Wellness
23andMe Holding Co. has announced it has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Missouri. The company said the filing is intended to facilitate a court-supervised sale process, resolve outstanding liabilities, and maintain operations during restructuring.
The company has secured a commitment for approximately $35 million in debtor-in-possession financing from JMB Capital Partners. According to 23andMe, the financing, along with revenue from ongoing operations, is expected to support the business throughout the proceedings.
23andMe stated that customer data access, management, and storage practices remain unchanged during the Chapter 11 process. The company also emphasized that any future buyer will be required to comply with applicable laws regarding the treatment of user data.
The filing follows the rejection of a final non-binding acquisition offer submitted by co-founder Anne Wojcicki and her affiliates on March 10. Wojcicki announced her resignation as CEO on March 23 and confirmed her intention to bid for the company’s assets. In a LinkedIn post, she stated:
“While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company and I intend to be a bidder. I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder.”
She also wrote:
“We have had many successes but I equally take accountability for the challenges we have today. There is no doubt that the challenges faced by 23andMe through an evolving business model have been real, but my belief in the company and its future is unwavering.”
23andMe said it has filed customary “first-day” motions with the court, including requests to continue employee wages and benefits and pay vendors. It is also seeking approval to reject a number of contracts and leases, including its Sunnyvale and San Francisco office spaces, in order to reduce operating expenses.
The company intends to use the Chapter 11 proceedings to resolve legal liabilities related to a data security incident disclosed in 2023. That incident involved unauthorized access to personal information associated with approximately 6.9 million user profiles.
On March 22, 2025, California Attorney General Rob Bonta issued a consumer alert reminding 23andMe customers of their rights under the Genetic Information Privacy Act and the California Consumer Privacy Act..
“California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data,” Bonta said in a press release.
“If you’re a 23andMe customer and you’re concerned about how your sensitive data is being used or stored — you can make a request for deletion under California law.”
According to 23andMe’s privacy policy, personal information may be “transferred to another company in the event of a sale, merger, acquisition, or similar event.”
The company reported estimated assets and liabilities each in the range of $100 million to $500 million in its bankruptcy filing. 23andMe became publicly traded via a SPAC merger in 2021 and was previously valued at approximately $6 billion. Its current market capitalization is around $20 million.
The company stated that it plans to run a 45-day sale process, soliciting qualified bids with the assistance of an independent investment bank. If multiple bids are received, an auction will be held. Any final transaction will be subject to court and regulatory approval.
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