23andMe Files for Chapter 11 Bankruptcy to Facilitate Sale

What You Should Know: 

– 23andMe, a human genetics and biotechnology company, has announced its decision to initiate voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern District of Missouri. 

– The bankruptcy filing is aimed at facilitating a structured sale process to maximize the value of its business. The company has assured its customers that operations will continue as normal and that there will be no changes to the way customer data is stored, managed, or protected.

Chapter 11 Details

23andMe is seeking court authorization to conduct a sale of substantially all its assets, either through a Chapter 11 plan or under Section 363 of the U.S. Bankruptcy Code. Upon court approval, the company, with the assistance of an independent investment banker, will actively solicit qualified bids over a 45-day period. If multiple bids are received, an auction will be held to ensure the highest possible value is obtained. 

To ensure continued operations during the proceedings, 23andMe has filed customary “first-day” motions, seeking court approval to pay employee wages and benefits, and compensate essential vendors and suppliers. The company has also requested approval to reject numerous contracts, including real estate leases in Sunnyvale and San Francisco, to reduce ongoing operating expenses. Additionally, 23andMe plans to use these proceedings to resolve all outstanding legal liabilities stemming from the previously disclosed October 2023 cyber incident.

Up to $35M in DIP Financing

The company has secured a commitment for debtor-in-possession (DIP) financing of up to $35 million from JMB Capital Partners. Upon court approval, this financing, combined with cash generated from ongoing operations, is expected to provide sufficient liquidity to support the business throughout the Chapter 11 process.

This decision follows the rejection by the Special Committee of a final non-binding acquisition proposal from Anne Wojcicki and her affiliates, which was submitted on March 10, 2025.

Leadership Changes

In conjunction with these proceedings, 23andMe has announced leadership changes. Anne Wojcicki has resigned from her position as Chief Executive Officer, effective immediately, by mutual agreement with the Special Committee. She will remain a member of the Board. Joe Selsavage, Chief Financial and Accounting Officer, has been appointed Interim Chief Executive Officer, and Matt Kvarda, a Managing Director at Alvarez & Marsal, has been named Chief Restructuring Officer. Thomas Walper has joined the Board and the Special Committee as an independent director, and Mr. Jensen has been appointed Chair of the Board.

“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,” said Mark Jensen, Chair and member of the Special Committee of the Board of Directors. “We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities. We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand and benefit from the human genome to live on for the benefit of customers and patients.”

Jensen continued, “We want to thank our employees for their dedication to 23andMe’s mission. We are committed to supporting them as we move through the process. In addition, we are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction.”