Gene testing company 23andMe announced on Sunday that it had filed for Chapter 11 bankruptcy protection to facilitate its sale, following years of difficulty in establishing a sustainable business model.
In a statement about the bankruptcy, the company revealed that its CEO, Anne Wojcicki, had resigned immediately, though she will remain on the board of directors.
Mark Jensen, chair of the board’s Special Committee, said in the statement, “After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business.”
Late last year, 23andMe announced it was laying off around 40% of its workforce, or approximately 200 employees, and halting the development of all its therapies as part of a restructuring effort.
In September, all seven of the company’s independent directors resigned collectively, expressing frustration with the CEO’s “strategic direction” and attempts to take 23andMe private.
The company, which went public in 2021, had never posted a profit. Its stock surged after the listing, briefly reaching a $6 billion valuation. Wojcicki, who owned 49% of the company, became a billionaire.
23andMe’s main product, an at-home DNA testing kit, provides “personalized genetic insights” that claim to highlight potential health risks, such as the likelihood of developing Alzheimer’s or certain cancers.
The company attempted to turn one-time customers into subscribers by offering ongoing feedback and personalized wellness plans but reportedly struggled to meet its objectives.