Investing.com-- 23Andme Holding Co (NASDAQ: ME ) has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Missouri to facilitate a court-supervised sale process, the company announced Monday.
The genetic testing firm said it will continue operations during the proceedings while seeking buyers for its assets.
The move follows the rejection of a takeover bid from company co-founder Anne Wojcicki and her affiliates.
Wojcicki has resigned as CEO but will remain on the board.
Interim CEO Joe Selsavage said the filing will help the company address financial challenges, including cost reductions and outstanding legal liabilities. The company received a $35 million debtor-in-possession financing commitment from JMB Capital Partners to support operations.
23andMe said that customer data storage and privacy protections remain unchanged and will be a key consideration in any sale.
The bankruptcy comes amid financial struggles and legal fallout from a 2023 cyber incident. The company expects to solicit bids over a 45-day period, with any deal subject to regulatory approvals.