On Sunday, consumer DNA testing service 23andMe announced it was filing for chapter 11 bankruptcy protection.
Under the plan, the company intends to seek new ownership and reduce its real estate holdings. Co-founder Anne Wojcicki has resigned as CEO.
23andMe says the filing will not change its policies for managing customer data.
"Through the sale process, 23andMe will look to secure a partner who shares in its commitment to customer data privacy and will further its mission of helping people access, understand and benefit from the human genome," a letter from the company read. "Any buyer will be required to comply with applicable law with respect to treatment of customer data."
California Attorney General Rob Bonta warned state residents about the development on Friday, giving consumers recommendations to deal with sensitive data that they may want to control access to.
"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."
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Bankruptcy is the latest business obstacle for 23andMe, which in 2024 laid off some 400 workers and shut down a therapeutics branch of the company. Wojcicki has been seeking to take the company private, which led to the resignation of all of its board's independent directors.
In September of 2024, the company agreed to pay $30 million to settle a class-action lawsuit stemming from a 2023 data breach that exposed the personal information of 6.9 million customers.
Shares of the company dipped below $1 following the bankruptcy news. The company reports $214.7 million in debt as of 2024 and assets of more than $277.4 million.
