The company announced the decision late on Sunday amid concerns about the security of millions of customers' genetic data.
ADVERTISEMENTThe genetic testing company 23andMe has filed for bankruptcy protection in an attempt to sell itself, the American firm has confirmed.
After struggling for years with its business model, 23andMe said it had started voluntary Chapter 11 proceedings in the US Bankruptcy Court for the Eastern District of Missouri.
The decision was taken "to facilitate a sale process to maximise the value of its business," according to Mark Jensen, who chairs the company's board of directors.
In a statement released late on Sunday, the firm also announced that its co-founder Anne Wojcicki had stepped down as CEO.
Wojcicki, who helped start the company in 2006, said on X that she was "disappointed" by the bankruptcy decision, but confirmed that she would bid for the firm.
"If I am fortunate enough to secure the company's assets through the restructuring process, I remain committed to our long-term vision of being a global leader in genetics," she said.
23andMe, whose main product is its home DNA test, was once valued as high as $6 billion (€5.5 billion). However, its value has plummeted in recent years, partly due to a drop in orders.
Almost half of the Californian firm's more than 15 million customers were affected by a data breach in 2023, raising concerns about the security of the genetic data it holds.
Such fears have not gone away, with California Attorney General Rob Bonta issuing a consumer alert on Friday about the company.
"California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data," Bonta said.
"Given 23andMe's reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company," he added.
In November, the company said it was laying off 200 members of staff, around 40% of its workforce.
Following Wojcicki's resignation, Joe Selsavage, 23andMe's chief financial officer, will serve as its interim chief executive.