23andMe, the genetic testing company, has filed for Chapter 11 bankruptcy protection following significant business challenges and security issues regarding customer data. CEO Anne Wojcicki resigned to position herself as a private bidder for the company after her previous buyout attempt was declined. Although 23andMe intends to maintain operations as it seeks a buyer, the company has faced financial declines, including a reported loss of $174 million this fiscal year. The troubles were exacerbated by a data breach in 2023, resulting in legal repercussions and loss of customer confidence.
23andMe filed for Chapter 11 bankruptcy to maximize its business value and will continue operations unchanged during the sale process, including customer data management.
CEO Anne Wojcicki resigned to pursue a private bid for the company, expressing disappointment over her previous offer being rejected by the board.
Despite public enthusiasm at its peak, 23andMe's market value plummeted from over $6 billion to under $50 million amidst financial struggles and a data breach.
A significant decline in revenue and customer trust followed a major data breach in 2023, leading to a class-action lawsuit against the company.
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