CEO steps down and stock plummets as 23andMe enters bankruptcy
Sunnyvale’s 23andMe reportedly has $214.7 million in debt compared with $277.4 million in assets. It filed for Chapter 11 bankruptcy in hopes of selling "substantially all of its assets."
Chapter 11 allows struggling businesses to restructure debts while continuing operations, with the goal of facilitating a sale. Board Chair Mark Jensen called bankruptcy "the best path forward," as it could reduce costs and resolve legal and leasehold liabilities. Despite this, the company’s stock lost nearly all its value, now trading below below $1 per share.
As the bankruptcy was announced, CEO and co-founder Anne Wojcicki also stepped down — but not for the reason assumed.
"I am supportive of the company and I intend to be a bidder," Wojcicki stated on social media. "I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder."
The company aims to continue operations, and if Wojcicki successfully acquires the business, it could emerge more financially stable post-restructuring. However, the bankruptcy has severely damaged trust, making recovery an uphill battle for any new owner.
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Learn MoreHow to protect your personal information
With 23andMe looking for a buyer, many consumers fear their private DNA data and other details will be sold, such as payment information, could be sold. Their concerns are rightly placed.
The company has stated that both it and any future owner must adhere to its privacy policy. However, it also acknowledged that in the event of "bankruptcy, merger, acquisition, reorganization or sale of assets, your personal information may be accessed, sold or transferred as part of that transaction." A new owner could also change the privacy policy going forward.
Sally, many consumers concerned about this issue went to the website to try to delete their data — but so many people tried to take this action at the same time that the computer system struggled to keep up, and consumers got error messages.
"This has been a nightmare," Pauline Long of Alabama told BBC. Long worried 23andMe would retain her data and attempted to delete it, but she had to wait two hours to speak with a customer service agent before successfully closing her account. She remains skeptical that her information was fully erased.
The company claimed the technical issues have been resolved, though users may need to provide additional verification before deletion requests are processed. It also noted "some limited information" would remain. Customers facing issues should contact 23andMe’s Customer Care via [email protected] for help.
If you are concerned about your DNA privacy, follow the deletion steps online, and if you encounter issues trying online first, and then reaching out via email if necessary. This is especially important because, while financial data breaches can be mitigated through measures like credit freezes, there is no comparable sageguard for genetic falling into the wrong hands.
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