The company’s CEO has also resigned with immediate effect
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(AFP/Getty Images)
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Genetic testing giant 23andMe has filed for bankruptcy protection in the US while it searches for a buyer.
It comes as the company struggles in the aftermath of a data hack and deals with heavy financial losses.
The DNA testing company has also announced the immediate resignation of Anne Wojcicki, its co-founder and chief executive.
California-based 23andMe uses home saliva collection kits to analyze customers’ DNA and provide them with personalized reports on their ancestry.
Since being founded in 2006, it has sold more than 12 million DNA testing kits.
It operates in many major markets, including the US, Canada, the UK, and Europe.
23andMe said it had kickstarted voluntary Chapter 11 proceedings in the US – meaning it intends to reorganize its debts and assets to have a fresh start, while remaining in business.
23andMe co-founder Anne Wojcickiopen image in gallery
23andMe co-founder Anne Wojcicki (Getty)
It will also see the company put itself up for sale.
The resignation of Wojcicki is “effective immediately”, by mutual agreement, according to the group.
In a post to social media platform X, formerly Twitter, Ms Wojcicki said she was “disappointed” by the bankruptcy plan but that she had resigned as chief executive so she could “be in the best position to pursue the company as an independent bidder”.
Chairperson Mark Jensen said: “After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximise the value of the business.”
He said the process would help the firm address “operational and financial challenges”, including through further cost-cutting and resolving legal liabilities.
The 23andMe headquarters in Californiaopen image in gallery
The 23andMe headquarters in California (Getty)
“In addition, 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.”
23andMe came under investigation by the UK and Canadian data protection regulators over a 2023 data breach and concerns that genetic information may have been compromised.
It also settled a legal case in the US alleging that the company failed to protect the privacy of its customers.
The firm reported a loss before income tax of more than US$128 million in its latest financial results, covering April to December 2024.
It said lower kit sales and a decline in average selling prices were partly behind a drop in revenues.