23andMe files for Chapter 11 bankruptcy. What that means for you and your data

23andMe has filed for Chapter 11 bankruptcy protection and its co-founder and CEO has resigned as the struggling genetic testing company continues its push to cut costs, but what does that mean for you and your data?

The company said Sunday that it will look to sell “substantially all of its assets” through a court-approved reorganization plan.

“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,” Mark Jensen, chair and member of the Special Committee of the Board of Directors, said in a statement. “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.”

The San Francisco-based company also said Anne Wojcicki had resigned as CEO effective immediately but would remain on the company’s board. Her resignation comes a couple weeks after a board committee had rejected a nonbinding acquisition proposal from Wojcicki.

Here's what to expect:

What does this mean for you?

According to the company, customer data "remains protected."

"The Chapter 11 filing does not change how we store, manage, or protect customer data. Our users’ privacy and data are important considerations in any transaction, and we remain committed to our users’ privacy and to being transparent with our customers about how their data is managed," the company said. "Any buyer of 23andMe will be required to comply with applicable law with respect to the treatment of customer data."

Those who already have genetic reports will continue to have access to those reports, their accounts and any other stored data, according to a website dedicated to customer concerns.

"23andMe was born from the idea that empowering people to harness and learn from their own DNA could change the future of healthcare. Since 2006, we have made dramatic strides, helping more than 15 million customers worldwide to better understand themselves and the impact of their genetics while contributing to vital research efforts," a statement on their website read. "We are proud of all that we have accomplished together and look forward to continuing to serve customers like you through our health and ancestry services. We appreciate your trust and support during this transition and remain dedicated to serving you and our mission."

Can you still order 23andMe?

Orders and subscriptions will "continue as normal," according to 23andMe.

"Any purchases or genetic testing kits sent in for processing will be handled without disruption," the company stated.

It's important to note, however, that the company did revise its refund policy "while under court supervision."

• Customers who purchase a test kit on or after March 23 will have 24 hours after purchase to request a refund.
• As usual, customers who purchased a test kit prior to the March 23 petition date will have 30 days from the date of purchase to request a refund.

Those who purchased from a third party will need to check that company's refund policy.

Does this mean 23andMe is going out of business?

No.

The company said it aims to use the Chapter 11 sale process "to maximize the value of our business while continuing to operate."

What's next for 23andMe?

The company said it hopes to "find a partner who shares our commitment to customer data privacy and allows our mission of helping people access, understand and benefit from the human genome to live on."

"Importantly, this step allows us to continue operating our business while we chart the path forward," the company wrote in a message to customers.

23andMe plans to continue operating its business and has $35 million in debtor-in-possession financing from JMB Capital Partners.

Shares of 23andMe Holding Co., which have shed nearly all their value since last spring, plunged below $1 in premarket trading Monday.

Why is 23andMe filing for bankruptcy?

The voluntary bankruptcy filing caps months of turmoil for the company, which has struggled to find a profitable business model since going public in 2021.

Last September, all of its independent directors resigned in a rare move following negotiations with Wojcicki, who had been trying to take the company private.

The company then announced in November that it would lay off 40% of its workforce, or more than 200 employees, and discontinue its therapeutics division.

In January, the board’s special committee said it was exploring strategic alternatives, including a possible sale.