23andMe files for bankruptcy, CEO steps down

(WAND) - Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection.

The company filed in Missouri federal court Sunday.

NBC News reports the company's CEO, Anne Wojcicki, has resigned from her role as chief executive effective immediately, though she will remain a member of the board.

Joseph Selsavage, 23andMe's chief financial and accounting officer, will serve as interim CEO.

"We have had many successes but I equally take accountability for the challenges we have today," Wojcicki wrote in a post on X. "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 declined to comment further to NBC News on the filing.

Wojcicki co-founded 23andMe in 2006, offering at-home DNA testing kits that gave customers insight into their family histories and genetic profiles.

The company, once valued at $6 billion, now has a market capitalization of around $25 million.

If 23andMe's aim to sell its assets through a Chapter 11 plan is approved by the court, the company will "actively solicit qualified bids" over a 45-day process, NBC News said. Wojcicki plans to pursue the company as an independent bidder.

23andMe has between $100 million and $500 million in estimated assets, as well as between $100 million and $500 million in estimated liabilities, according to the bankruptcy filing.

23andMe has also faced privacy concerns for years. Hackers accessed the information of almost 7 million customers in October 2023.

California Attorney General Rob Bonta on Friday issued a consumer alert urging residents to consider deleting their genetic data from 23andMe's website.

23andMe said there will be no changes to the way that it stores, protects or manages customer data through the sale process, and it will continue operating business as usual.