23andMe Initiates Voluntary Chapter 11 Process to Maximize Stakeholder Value Through Court-Supervised Sale Process
23andMe (Nasdaq: ME) has initiated voluntary Chapter 11 proceedings to facilitate a court-supervised sale process, aiming to maximize business value. The company secured $35 million in DIP financing from JMB Capital Partners to support ongoing operations.
Key developments include:
- CEO Anne Wojcicki's resignation, with CFO Joe Selsavage appointed as Interim CEO
- Matt Kvarda appointed as Chief Restructuring Officer
- Plans to reject real estate leases in Sunnyvale and San Francisco
- Intent to resolve legal liabilities from October 2023 cyber incident
The company will conduct a 45-day bidding process for qualified buyers, potentially leading to an auction. Customer data management remains unchanged, and any potential buyer must comply with applicable data privacy laws. The Special Committee rejected Wojcicki's final non-binding acquisition proposal made on March 10, 2025.
23andMe (Nasdaq: ME) ha avviato un procedimento volontario di Chapter 11 per facilitare un processo di vendita sotto supervisione giudiziaria, con l'obiettivo di massimizzare il valore dell'azienda. La società ha ottenuto 35 milioni di dollari in finanziamenti DIP da JMB Capital Partners per sostenere le operazioni in corso.
Sviluppi chiave includono:
- Le dimissioni del CEO Anne Wojcicki, con il CFO Joe Selsavage nominato CEO ad interim
- Matt Kvarda nominato Chief Restructuring Officer
- Progetti per rifiutare i contratti di locazione immobiliare a Sunnyvale e San Francisco
- Intenzione di risolvere le responsabilità legali derivanti dall'incidente informatico di ottobre 2023
L'azienda condurrà un processo di offerta di 45 giorni per acquirenti qualificati, che potrebbe portare a un'asta. La gestione dei dati dei clienti rimane invariata e qualsiasi potenziale acquirente deve conformarsi alle leggi sulla privacy dei dati applicabili. Il Comitato Speciale ha respinto l'ultima proposta di acquisizione non vincolante di Wojcicki presentata il 10 marzo 2025.
23andMe (Nasdaq: ME) ha iniciado un procedimiento voluntario de Capítulo 11 para facilitar un proceso de venta supervisado por el tribunal, con el objetivo de maximizar el valor del negocio. La compañía aseguró 35 millones de dólares en financiamiento DIP de JMB Capital Partners para apoyar las operaciones en curso.
Los desarrollos clave incluyen:
- La renuncia de la CEO Anne Wojcicki, con el CFO Joe Selsavage nombrado como CEO interino
- Matt Kvarda nombrado como Chief Restructuring Officer
- Planes para rechazar los contratos de arrendamiento inmobiliario en Sunnyvale y San Francisco
- Intención de resolver las responsabilidades legales del incidente cibernético de octubre de 2023
La empresa llevará a cabo un proceso de licitación de 45 días para compradores calificados, lo que podría llevar a una subasta. La gestión de datos de los clientes permanece sin cambios, y cualquier comprador potencial debe cumplir con las leyes de privacidad de datos aplicables. El Comité Especial rechazó la última propuesta de adquisición no vinculante de Wojcicki presentada el 10 de marzo de 2025.
23andMe (Nasdaq: ME)는 비즈니스 가치를 극대화하기 위해 법원 감독 하에 판매 프로세스를 용이하게 하기 위해 자발적인 챕터 11 절차를 시작했습니다. 이 회사는 운영을 지원하기 위해 JMB Capital Partners로부터 3500만 달러의 DIP 자금을 확보했습니다.
주요 개발 사항은 다음과 같습니다:
- CEO Anne Wojcicki의 사임, CFO Joe Selsavage가 임시 CEO로 임명됨
- Matt Kvarda가 Chief Restructuring Officer로 임명됨
- Sunnyvale과 샌프란시스코의 부동산 임대 계약을 거부할 계획
- 2023년 10월 사이버 사건으로 인한 법적 책임을 해결할 의도
회사는 자격을 갖춘 구매자를 위한 45일 입찰 프로세스를 진행할 예정이며, 이는 경매로 이어질 수 있습니다. 고객 데이터 관리에는 변화가 없으며, 모든 잠재적 구매자는 관련 데이터 개인 정보 보호 법률을 준수해야 합니다. 특별 위원회는 2025년 3월 10일 Wojcicki의 최종 비구속 인수 제안을 거부했습니다.
23andMe (Nasdaq: ME) a engagé une procédure volontaire de chapitre 11 pour faciliter un processus de vente supervisé par le tribunal, visant à maximiser la valeur de l'entreprise. La société a sécurisé 35 millions de dollars de financement DIP de JMB Capital Partners pour soutenir ses opérations en cours.
Les développements clés incluent :
- La démission de la PDG Anne Wojcicki, avec le CFO Joe Selsavage nommé PDG par intérim
- Matt Kvarda nommé Chief Restructuring Officer
- Plans pour rejeter les baux immobiliers à Sunnyvale et San Francisco
- Intention de résoudre les responsabilités légales liées à l'incident cybernétique d'octobre 2023
L'entreprise mènera un processus d'enchères de 45 jours pour des acheteurs qualifiés, pouvant conduire à une vente aux enchères. La gestion des données clients reste inchangée et tout acheteur potentiel doit se conformer aux lois sur la protection des données applicables. Le Comité spécial a rejeté la dernière proposition d'acquisition non contraignante de Wojcicki faite le 10 mars 2025.
23andMe (Nasdaq: ME) hat ein freiwilliges Verfahren nach Chapter 11 eingeleitet, um einen gerichtlichen Verkaufsprozess zu erleichtern, der darauf abzielt, den Unternehmenswert zu maximieren. Das Unternehmen sicherte sich 35 Millionen Dollar an DIP-Finanzierung von JMB Capital Partners zur Unterstützung der laufenden Geschäfte.
Wichtige Entwicklungen umfassen:
- Rücktritt von CEO Anne Wojcicki, CFO Joe Selsavage wurde als Interims-CEO ernannt
- Matt Kvarda wurde zum Chief Restructuring Officer ernannt
- Pläne zur Ablehnung von Immobilienmietverträgen in Sunnyvale und San Francisco
- Absicht, rechtliche Verpflichtungen aus dem Cybervorfall im Oktober 2023 zu klären
Das Unternehmen wird einen 45-tägigen Bietprozess für qualifizierte Käufer durchführen, der möglicherweise zu einer Auktion führt. Das Management der Kundendaten bleibt unverändert, und jeder potenzielle Käufer muss die geltenden Datenschutzgesetze einhalten. Der Sonderausschuss wies das letzte nicht verbindliche Übernahmeangebot von Wojcicki, das am 10. März 2025 unterbreitet wurde, zurück.
- Secured $35M DIP financing to maintain operations
- Court-supervised sale process may maximize asset value
- Continuing normal business operations during proceedings
- Filing for Chapter 11 bankruptcy protection
- CEO Anne Wojcicki's resignation
- Rejection of real estate leases indicates cost-cutting measures
- Unresolved legal liabilities from October 2023 cyber incident
- Special Committee rejected CEO's acquisition proposal
Insights
23andMe's Chapter 11 bankruptcy filing represents a severe financial deterioration that will likely result in significant or total losses for existing equity shareholders. The court-supervised sale process typically subordinates equity holders behind secured and unsecured creditors in the payment hierarchy. With the company seeking to sell substantially all assets through either a Chapter 11 plan or Section 363 sale, shareholders face probable dilution or complete elimination of their equity value.
The $35 million DIP financing secured from JMB Capital Partners provides critical short-term liquidity but adds another layer of senior secured debt ahead of existing stakeholders. This financing structure, while necessary to maintain operations during proceedings, further diminishes recovery prospects for shareholders.
The rejection of CEO Anne Wojcicki's acquisition proposal, followed by her immediate resignation, signals internal disagreement over valuation and restructuring strategy. The company's motion to reject real estate leases in Sunnyvale and San Francisco indicates aggressive cost-cutting measures typical of companies in severe financial distress.
Most concerning is the company's stated intention to use these proceedings to resolve outstanding legal liabilities from the October 2023 cybersecurity incident. This suggests these liabilities may be substantial enough to have contributed significantly to the company's financial collapse, creating an insurmountable burden that necessitated this bankruptcy filing.
23andMe's bankruptcy filing marks a dramatic fall for what was once considered a pioneering direct-to-consumer genetics company. The filing comes after the company has struggled with declining consumer interest in DNA testing kits, challenges monetizing its genetic database, and difficulties advancing its therapeutic programs to generate meaningful revenue.
The company's commitment to maintaining customer data management practices offers minimal reassurance, as any asset sale will inevitably involve the transfer of its most valuable asset—the genetic data of millions of customers. While the filing states "any buyer will be required to comply with applicable law" regarding customer data, this provides only baseline protection rather than exceptional safeguards.
The 45-day bidding process suggests urgency in finding a buyer, likely due to rapidly deteriorating finances. Potential bidders may include pharmaceutical companies interested in the genetic database for drug discovery, competing genetic testing companies seeking to consolidate market share, or private equity firms looking to restructure and extract value.
The October 2023 cyber incident appears to have been the catalyst that accelerated the company's decline, creating substantial legal liabilities that the company now explicitly seeks to resolve through bankruptcy. This filing demonstrates how data security vulnerabilities can translate into existential business risks for companies whose primary asset is sensitive personal information.
Intends to use Proceedings to Conduct a Value-Maximizing Sale Process and Resolve Liabilities
Company Expects to Continue Business Operations in the Ordinary Course During Proceedings; Secures Commitment for Approximately
No Changes to Customer Data Management and Access; Company Remains Committed to Transparency Around Customer Data Privacy; Any Buyer will be Required to Comply with Applicable Law with Respect to Treatment of Customer Data
Company Announces Board and Leadership Changes to Support Restructuring and Sale Process
SAN FRANCISCO, March 23, 2025 (GLOBE NEWSWIRE) -- 23andMe Holding Co. (“23andMe” or the “Company”) (Nasdaq: ME), a leading human genetics and biotechnology company, today announced that it has initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern District of Missouri (the “Court”) to facilitate a sale process to maximize the value of its business. The Company intends to continue operating its business in the ordinary course throughout the sale process. There are no changes to the way the Company stores, manages, or protects customer data.
“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,” said Mark Jensen, Chair and member of the Special Committee of the Board of Directors. “We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities. We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand and benefit from the human genome to live on for the benefit of customers and patients.”
Jensen continued, “We want to thank our employees for their dedication to 23andMe’s mission. We are committed to supporting them as we move through the process. In addition, we are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction.”
23andMe is seeking authorization from the Court to commence a process to sell substantially all of its assets through a chapter 11 plan or pursuant to Section 363 of the U.S. Bankruptcy Code. If approved by the Court, the Company, with the assistance of an independent investment banker, would actively solicit qualified bids over a 45-day process. If multiple qualified bids are submitted during the Court-supervised sale process, the Company plans to conduct an auction to maximize the value of its assets. Any buyer will be required to comply with applicable law with respect to the treatment of customer data and any transaction will be subject to customary regulatory approvals, including, as applicable, approvals under the Hart-Scott-Rodino Act and the Committee on Foreign Investment in the United States.
The Company has filed customary motions with the Court seeking a variety of “first-day” relief, including the authority to pay employee wages and benefits and compensate certain vendors and suppliers on a go-forward basis. 23andMe has also filed a motion with the Court seeking approval to reject numerous contracts, including the real estate leases in Sunnyvale and San Francisco, to reduce 23andMe’s ongoing operating expenses. The Company expects to receive Court approval for these requests.
In addition, 23andMe intends to use the proceedings to resolve all outstanding legal liabilities stemming from the previously disclosed October 2023 cyber incident.
23andMe has received a commitment for debtor-in-possession (“DIP”) financing of up to
The commencement of the proceedings follows the rejection by the Special Committee of the final non-binding acquisition proposal made by Anne Wojcicki and certain of her affiliates on March 10, 2025. Ms. Wojcicki's proposal was included in an amended Schedule 13D filing made by Ms. Wojcicki and such affiliates with the Securities and Exchange Commission on March 11, 2025.
Additional information regarding 23andMe’s Chapter 11 filing, proceedings and claims process will be available at https://restructuring.ra.kroll.com/23andMe. Questions about the claims process should be directed to the Company’s claims agent, Kroll, at 23andMeInfo@ra.kroll.com or by calling (888) 367-7556.
Board and Leadership Changes to Support Restructuring and Sale Process
23andMe also announced that Anne Wojcicki is resigning from her role as Chief Executive Officer, effective immediately, by mutual agreement between Ms. Wojcicki and the Special Committee. Ms. Wojcicki will continue to serve as a member of 23andMe’s Board. The Board has appointed Joe Selsavage, Chief Financial and Accounting Officer, to the additional role of Interim Chief Executive Officer and Matt Kvarda, a Managing Director at Alvarez & Marsal, as Chief Restructuring Officer. In addition, Thomas Walper, a former Partner in the Financial Restructuring Practice at Munger, Tolles & Olson LLP, was appointed to 23andMe’s Board and the Special Committee as an independent director. Mr. Jensen has been appointed Chair of the Board.
Advisors
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis & Bockius LLP are serving as legal counsel to 23andMe and Alvarez & Marsal North America, LLC as restructuring advisor. Moelis & Company LLC is serving as investment banker and Goodwin Procter LLP is serving as legal advisor to the Special Committee of 23andMe’s Board of Directors. Reevemark and Scale are serving as communications advisors to the Company.
About 23andMe
23andMe is a genetics-led consumer healthcare and biotechnology company empowering a healthier future. For more information, please visit www.23andme.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release are forward-looking statements. The words "believes," "anticipates," "estimates," "plans," "expects," "intends," "may," "could," "should," "potential," "likely," "projects," “predicts,” "continue," "will," “schedule,” and "would" or, in each case, their negative or other variations or comparable terminology, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are predictions based on 23andMe’s current expectations and projections about future events and various assumptions. 23andMe cannot guarantee that it will actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements and you should not place undue reliance on 23andMe’s forward-looking statements. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond the control of 23andMe), or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements, which could include the following: risks and uncertainties relating to the Company’s Chapter 11 case (the “Chapter 11 case”), including but not limited to, the Company’s ability to obtain bankruptcy court approval with respect to motions in the Chapter 11 case, the effects of the Chapter 11 case on the Company and on the interests of various constituents, bankruptcy court rulings in the Chapter 11 case and the outcome of the Chapter 11 case in general, the Company’s plans to pursue a structured sale of its assets pursuant to a competitive auction and sale process pursuant to a Chapter 11 plan or under Section 363 of the Bankruptcy Code, the length of time the Company will operate under the Chapter 11 case, risks associated with any third-party motions in the Chapter 11 case, the potential adverse effects of the Chapter 11 case on the Company’s liquidity or results of operations and increased legal and other professional costs necessary to execute the Company’s reorganization; whether the Company will emerge, in whole or in part, from the Chapter 11 case as a going concern, trading price and volatility of the Company’s Class A Common Stock, and the ability of the Company to remain listed on The NASDAQ Capital Market. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The statements made herein are made as of the date of this press release and, except as may be required by law, 23andMe undertakes no obligation to update them, whether as a result of new information, developments, or otherwise.
Contact Information
investors@23andme.com
press@23andme.com
FAQ
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