After immense success for almost two decades, 23andMe has officially filed for Chapter 11 bankruptcy protection in Missouri federal court. The news came out on Sunday night amid multiple bankruptcy declarations from various chains in the US. Anne Wojcicki has resigned from the position of chief executive officer effective immediately. Joseph Selsavage, who was the chief financial officer of the company, will now serve as the interim CEO while Annee stays a member of the board. If you are someone who wants to know more about 23andMe’s bankruptcy declaration, this article is for you.
23andMe Files For Bankruptcy: What Anne Wojcicki Said About The Bankruptcy?
Anne Wojcicki, who was serving as the chief executive officer of 23andMe, took over her X account and wrote about the bankruptcy in her post. She wrote on X that the company has had many successes but she equally takes the responsibility for the challenges it has today. Anne added that there is no doubt that the challenges 23andMe is facing through an evolving business model are real. However, her belief in the company and its future is still unwavering. Anne has officially stepped down from her position as the CEO of the company.
The Company’s Success And Downfall
Anne Wojcicki co-founded the company in 2006 and the company witnessed a period of immense success after its launch. It skyrocketed into the mainstream. This was all because of its DNA testing kits that gave customers an insight into their family histories and genetic profiles at home. 23andMe went public in 2021 through a merger with a special-purpose acquisition company. It valued the company at around $3.5 billion at the time. However, it all came crashing down when the stock of the company had a freefall recently. This was because the company was struggling to generate recurring revenue and stand up viable research and therapeutics businesses. The company is now reportedly worth less than $50 million.
Formation Of Special Committees
A year ago, the independent directors of 23andMe formed multiple special committees aiming to evaluate the potential future path. Anne Wojcicki has mitted many proposals to take 23andMe private. But, all her proposals were rejected. The committee unanimously decided to reject the latest proposal earlier this month. If the company’s plan to sell all its assets through a Chapter 11 plan is approved in court, the company will then actively solicit qualified over 45 days. In the post that Wojcicki wrote on X this Monday, she also mentioned that she’s planning to pursue the company as an independent bidder.
Privacy Concerns Contributed To The Downfall
Apart from the financial struggles that the company is facing, another reason that contributed to the downfall of the company was the privacy concerns surrounding the genetic database of 23andMe. In the month of October 2023, hackers accessed the information of around 7 million customers of 23andMe. Rob Bonta, California Attorney Journal, issued a consumer alert on Friday urging its customers to delete their genetic data from 23andMe’s website.
Responding to this, the company stated it will not change the way it stores, protects, or manages customer data through the sale process. It stated that it will continue operating its business as usual. Anne Wojcicki stated that she’ll continue tirelessly advocating for customers to have choice and transparency with respect to their personal data, regardless of platform.
