Gene testing company 23andMe announced last Sunday, March 23, that it had filed for Chapter 11 bankruptcy protection.
The firm noted that the mentioned procedure will help to facilitate its sale. Over the past few years, the company has been trying to find a sustainable business model. The mentioned efforts proved fruitless. Against this background, the company found itself in a situation where bankruptcy has become what can be called an inevitable form of reality for it.
In a statement announcing the bankruptcy, it was noted that the firm’s chief executive officer Anne Wojcicki resigned immediately. At the same time, she will remain on the company’s board of directors.
Mark Jensen, chair and member of the Special Committee of the board of directors, stated that after a thorough evaluation of strategic alternatives, it was determined that a court-supervised sale process is the best path forward to maximize the value of the business.
Last year, the company announced layoffs of about 40% its workforce. The relevant decision affected around 200 people. The firm also discontinued further development of all its therapies as part of a restructuring program.
In September, all seven independent directors of the company resigned en masse. They expressed their frustration with the strategic direction followed by the chief executive officer and attempts to make the firm private.
The company went public in 2021. The firm has never made a profit. Following the listing, the company’s shares rose sharply in price. Against this background, the valuation of 23andMe has briefly reached $6 billion.
As we have reported earlier, Retailer Party City Files for Bankruptcy.
