MW 23andMe files for bankruptcy. Here's what may be next for the DNA-kit company.

By Ciara Linnane

The once-highflying consumer-health company had warned last year that it may not survive

23andMe Holding Co.'s stock tumbled 43% early Monday, after the DNA-testing company filed for Chapter 11 bankruptcy, just months after admitting there was substantial doubt about its ability to continue as a going concern.

"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," Mark Jensen, chair and member of the special committee of the board of directors, said in a statement.

The company $(ME)$ has secured a $35 million debtor-in-possession loan commitment from JMB Capital Partners Lending LLC and has asked the court for "first-day" relief that will allow it to pay employee wages and benefits, along with vendors and suppliers. It has also requested approval to reject numerous contracts, including real-estate leases in Sunnyvale and South San Francisco to reduce operating costs.

The company is seeking authorization to pursue a structured sale of assets via an auction and sale process. The special committee has hired Moelis & Co. LLC as an adviser. Proceeds will also be used to settle all outstanding legal liabilities stemming from a cyber incident in October 2023.

Anne Wojcicki, co-founder, chief executive and president, has resigned as an officer of the company effective 5 p.m. Sunday. The board has named Joseph Selsavage, currently chief financial and accounting officer, as interim CEO and president.

Once a booming consumer-health company, 23andMe has struggled as its ambitions to become a leading healthcare company by building out the company's core product of tracking individual genetic histories into telehealth and drug development have been stymied.

Consumer demand for its DNA-testing kits has dropped sharply over time and it has become evident that consumers, once they have received their test results, have no further use for the product or company. That made it difficult to create an aftermarket and grow sales.

In September, 23andMe's independent board members resigned en masse over a dispute with Wojcicki's plans to take the company private.

Earlier in March, the committee rejected another acquisition proposal from Wojcicki and certain affiliates.

The stock has fallen 78% in the last 12 months, while the S&P 500 SPX has gained 8%.

-Ciara Linnane

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March 24, 2025 07:14 ET (11:14 GMT)

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