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23andMe is Going Bankrupt
23andMe is Going Bankrupt The genetic testing pioneer 23andMe has filed for Chapter 11 bankruptcy protection and announced that co-founder
March 31, 2025
23andMe is Going Bankrupt
The genetic testing pioneer 23andMe has filed for Chapter 11 bankruptcy protection and announced that co-founder Anne Wojcicki has resigned as CEO. The San Francisco-based company, which revolutionized consumer DNA testing, revealed on Sunday that it will seek to sell “substantially all of its assets” through a court-approved reorganization plan.
Chapter 11 is a type of bankruptcy protection specific to corporations, rather than Chapter 7 or 31, which are focused on individuals.
Why 23andMe is Going Bankrupt
This bankruptcy filing follows months of mounting challenges for the once-promising biotech company. Founded in 2006 with a mission to transform genetics and healthcare, 23andMe became a household name through its saliva-based DNA testing kits that offered consumers insights into their ancestry and genetic health predispositions.
However, the company has struggled to establish a profitable business model since going public in 2021. Recent troubles include:
- A significant data breach in October 2023 that compromised ancestral information for nearly 7 million customers.
- The resignation of all independent directors last September following acquisition negotiations.
- A 40% workforce reduction announced in November 2023, eliminating more than 200 jobs.
- Discontinuation of its therapeutics division.
- Plummeting stock value, with shares trading under $1 following the bankruptcy announcement.
23andMe’s Financial Position
The Chapter 11 filing reported total debts exceeding $214.7 million as of the end of 2023, with assets amounting to over $277.4 million. The company has secured $35 million in debtor-in-possession financing from JMB Capital Partners to support operations throughout the bankruptcy process.
What Happens Next?
23andMe states that filing for Chapter 11 protection will facilitate a sale of the company while continuing operations. Board Chair Mark Jensen called this court-supervised process “the best path forward” to help reduce costs and resolve legal and leasehold liabilities.
Interestingly, despite stepping down as CEO, Wojcicki intends to bid on 23andMe as the company pursues a sale through bankruptcy. In a social media statement, she explained that she resigned to be “in the best position” as an independent bidder, adding that her “belief in the company and its future is unwavering.”
Customer Data Concerns
While 23andMe is going bankrupt, its stores of genetic data remain a cause for concern. For the millions of customers who have shared their genetic information with 23andMe, privacy concerns remain paramount. The company insists the bankruptcy filing won’t change how it stores or protects data, with Jensen stating that data privacy will be “an important consideration” in any future sale.
However, experts note that risks persist. John Bringardner of Debtwire points out that “personal data collected by 23andme has always been at risk,” highlighting the 2023 data breach that resulted in a $30 million settlement.
California Attorney General Rob Bonta recently issued an urgent alert reminding 23andMe customers of their legal rights under state law and suggesting they consider deleting their genetic data held by the company.
Are You Facing Financial Challenges?
While 23andMe’s bankruptcy represents a high-profile corporate restructuring, businesses and individuals across the country face financial difficulties every day. Understanding your options during financial hardship is crucial for making informed decisions about your future.
At BankruptcyAttorneys.net, we specialize in connecting individuals and businesses with qualified bankruptcy attorneys who can provide guidance tailored to your specific situation. Our network of experienced professionals offers free, no-obligation consultations to help you understand all available options for debt relief.
Whether you’re considering Chapter 7, Chapter 13, or other debt resolution strategies, our attorneys can help you navigate the complex legal landscape of bankruptcy protection and work toward a fresh financial start. Visit BankruptcyAttorneys.net today to schedule your confidential consultation with a bankruptcy professional in your area.
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