23andMe Holding Co., the once high-flying genetic testing company, is seeking Chapter 11 bankruptcy protection. In a stunning move today, co-founder and CEO Anne Wojcicki has left her position at the helm, effective immediately. She will continue to have influence in the company’s board room. The company intends to liquidate almost all of its assets for sale. This step is being taken as part of a court-approved reorganization plan designed to bring its financial situation back into balance.
The company’s stock has already nosedived in recent weeks, and Monday fell below $1 in premarket trading. That’s a dramatic drop from last spring. The company has still not been able to prove a sustainable business model after going public in 2021.
In November, 23andMe announced it would lay off 40% of its workforce, equating to over 200 employees, and made the decision to discontinue its therapeutics division. Despite these challenges, the company plans to continue its operations with the support of $35 million in debtor-in-possession financing from JMB Capital Partners.
Mark Jensen, the board chair of 23andMe Holding Co., stated that a court-supervised sale is seen as "the best path forward to maximize the value of the business." The board's special committee is exploring strategic alternatives, including a possible sale, as all independent directors resigned in September 2023.
"We are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction." – Mark Jensen
