Popular DNA testing company 23andMe announced today that it has filed for Chapter 11 bankruptcy protection in an effort to sell the company. The move comes after years of struggling to achieve profitability and a recent round of layoffs that saw the company cut approximately 40% of its workforce.
Chapter 11 bankruptcy allows a company to reorganize its finances and operations while continuing to operate. In 23andMe's case, the company intends to use the bankruptcy process to facilitate a sale of the business under the supervision of the bankruptcy court.
"We believe that this is the best path forward for 23andMe and our customers," said a company spokesperson. "We are committed to continuing to provide our customers with the same high-quality services they have come to expect during this process."
23andMe's DNA testing kits allow customers to learn about their ancestry and genetic predispositions to certain health conditions. The company has faced increasing competition in the genetic testing market in recent years, as well as concerns about data privacy and security.
The company plans to continue operating its business as usual during the bankruptcy proceedings and sale process. Customers can still purchase DNA testing kits and access their existing genetic information.
23andMe Files for Bankruptcy, Seeks Sale
Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection. The company, known for its at-home DNA kits, plans to sell itself under court supervision. 23andMe has struggled to become profitable and recently laid off a significant portion of its staff. The company intends to continue operating during the sales process.
Source: Read the original article at NBC