23andMe Holding has filed for voluntary Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Missouri to facilitate a court-supervised sale of its assets. The genetics and biotechnology company aims to maximize stakeholder value while continuing business operations. The company stated that the process will help address financial and operational challenges, including cost reductions and the resolution of legal and leasehold liabilities. Mark Jensen, Chair of the Special Committee of the Board of Directors, emphasized that 23andMe remains committed to safeguarding customer data throughout the proceedings. The company also seeks court approval to reject certain contracts and real estate leases to reduce operating expenses.
As part of the process, 23andMe has secured up to $35 million in debtor-in-possession financing from JMB Capital Partners, which, upon court approval, will support ongoing operations. The company plans to solicit bids over 45 days, with an auction if multiple qualified offers emerge. Any transaction will be subject to regulatory approval, including compliance with data privacy laws. The bankruptcy filing follows the rejection of a non-binding acquisition proposal from Anne Wojcicki and her affiliates. 23andMe also intends to resolve outstanding legal liabilities related to a cyber incident disclosed in October 2023.
