23andMe, a healthcare and biotechnology company specializing in direct-to-consumer genetic testing, has filed for Chapter 11 bankruptcy protection, and co-founder and CEO Anne Wojcicki has resigned.

According to a news release, the San Francisco-founded firm started voluntary Chapter 11 proceedings Sunday night in the U.S. Bankruptcy Court for the Eastern District of Missouri.

23andMe will continue business operations after its bankruptcy filing

The company will continue its business operations while seeking a new asset buyer.

“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 news release statement.

“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.”

Wojcicki will remain on the 23andMe board

If the court approves, 23andMe will work with an independent investment banker to solicit qualified bids within 45 days. Should multiple bids be received, the company will hold an auction to maximize value, according to the news release.

The potential buyer must comply with applicable laws regarding sensitive information, including customer DNA, and undergo necessary regulatory approvals.

The firm also announced that Wojcicki stepped down from her role as chief executive officer “effective immediately” but will continue to serve on the 23andMe board.

‘I equally take accountability for the challenges we have today‘

On Monday, Wojcicki took responsibility for the company’s recent struggles in light of the bankruptcy filing.

“We have had many successes but I equally take accountability for the challenges we have today,” she wrote in a post on X, formerly Twitter. “There is no doubt that the challenges faced by 23andMe through an evolving business model have been real, but my belief in the company and its future is unwavering.”

“As I think about the future, I will continue to tirelessly advocate for customers to have choice and transparency with respect to their personal data, regardless of platform,“ she added.

23andMe was founded in 2006

Business Insider reported that Wojcicki co-founded 23andMe in 2006 after a Wall Street career. She married Google co-founder Sergey Brin in 2007, and the tech company invested millions in the DNA testing firm. Wojcicki and Brin divorced in 2015.

23andMe went public in June 2021 with a valuation of $6 billion. However, the company struggled to turn a profit and faced ongoing challenges. Wojcicki attempted to privatize the firm in July 2024 and again this month, but a special committee rejected both proposals.

Joe Selsavage, chief financial and accounting officer, will serve as the firm’s new interim CEO.

23AndMe