Genetic testing corporation, 23andMe, pursues bankruptcy petitioning
23andMe filing for Chapter 11 bankruptcy, CEO Anne Wojcicki steps down
In a surprising turn of events, gene testing company 23andMe announced on Sunday it's taken the leap into bankruptcy protection with a Chapter 11 filing. The move is a part of an ambitious plan to seal the deal on a corporate takeover, after battling years of financial woes trying to crack a profitable business model.
The announcement came accompanied by the news that Anne Wojcicki, the company's CEO and co-founder, has stepped down, effective immediately. In a keynote statement, Mark Jensen, chair and member of the Special Committee of the board of directors, explained their decision to embrace restructuring.
"After a deep dive analysis of all possible options, we've decided a court-supervised sale process is our best bet to squeeze every last drop of worth from the company," Jensen said.
Despite the rocky road ahead, the company intends to keep its operations running smoothly, with no disruptions to the processing of genetic testing kits, filling orders, or maintaining customer subscriptions. On the privacy front, customer data remains well-guarded, and any potential buyers will have to play by the rules set by data protection laws.
As part of the bankruptcy proceedings, 23andMe secured around $35 million in debtor-in-possession (DIP) financing to carry the business through this elaborate dance. The company is also undergoing changes in its board and leadership to help steer the restructuring and sale process ahead.
The auction block will be open for 45 days, accepting bids to maximize the value of the company's assets. If more than one bid graces the table, an auction may ensue for the ultimate prize.
Wojcicki, who made a non-binding offer to acquire the company back in March, has been involved in attempts to purchase parts of the company, but she is not the only contender in the game. The circumstances of her resignation seem unrelated to the Chapter 11 filing.
As the unfolding drama unfolds, stay tuned for updates on this evolving situation.
- The strategic move to file for Chapter 11 bankruptcy at 23andMe is intended as part of an ambitious plan to secure a corporate takeover, after years of struggling to find a profitable business model in the tech industry.
- In the midst of this restructuring process, the founder of 23andMe, Anne Wojcicki, has stepped down as CEO, relinquishing her position effective immediately.
- Mark Jensen, chair and member of the Special Committee of the board of directors, has supervised the decision to pursue a court-supervised sale process, in hopes of maximizing the value of the company's assets to potential business buyers.
