(The Center Square) – 23andMe, the prominent San Francisco genetic testing company that helps customers determine their ancestry, has filed for bankruptcy.
Additionally, CEO Anne Wojcicki has resigned, effective immediately, the health care and biotechnology company said in a news release Sunday announcing the Chapter 11 bankruptcy.
Wojcicki wrote on X Sunday that she stepped down so that she can be an independent bidder to buy the company. The 23andMe Board of Directors rejected Wojcicki’s March 10 bid to purchase the company she co-founded.
Wojcicki will remain on the 23andMe board.
23andMe announced Joe Selsavage, its chief financial and accounting officer, has been named interim CEO.
The company said it was filing for bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Missouri. 23andMe is seeking the court’s authorization to sell all of its assets.
A court-supervised sales process is the best way “to maximize the value of the business,” said Mark Jensen, who became chair of the 23andMe board during the newly announced leadership changes.
In the meantime, 23andMe said, it won’t make any changes in how it stores, manages or protects customers’ genetic data.
But before the bankruptcy announcement, California Attorney General Rob Bonta issued a consumer alert.
“Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company,” Bonta said Friday.
He cited the state’s Genetic Information Privacy Act and the California Consumer Protection Act.
Customers can delete data by going to 23andme.com, the Attorney General’s Office said, adding that customers then:
Sign onto their account.Go to the Settings section of their profile.Scroll to the “23andMe Data” section on the bottom of the page.Click “View” next to “23andMe Data.”Save a copy of their data, if they want, by clicking on an option to download it to their device.Scroll to the “Delete Data” section.Click “Permanently Delete Data.” 23andMe will send the customers an email. Customers then will follow a link in the email to confirm their deletion request.
If customers previously chose to have their saliva sample and DNA stored by 23andMe, they can change their mind and call for the sample to be destroyed from their account settings page, under “Preferences,” Bonta’s office said.
23andMe is well-known for genetics testing that provides information for customers’ ancestry and genetic health profile, including risks of passing some conditions to their children.
“Since 2006, we have built an incredible consumer brand with one of the world’s largest and most diverse genetic communities,” Wojcicki wrote on X.
“If I am fortunate enough to secure the company’s assets through the restructuring process, I remain committed to our long-term vision of being a global leader in genetics and establishing genetics as a fundamental part of healthcare ecosystems worldwide,” the former CEO said.
23andMe said it filed a motion with the bankruptcy court for the authority to pay employee wages and benefits and compensate certain vendors and suppliers. It also filed a motion to reject contracts, including real estate leases in San Francisco and the Santa Clara County city of Sunnyvale, to reduce its expenses.
For more about the bankruptcy filing, go to restructuring.ra.kroll.com/23andMe.
