23andMe Files For Chapter 11 Bankruptcy — How To Delete Your Data

23andMe, known for its saliva-based DNA test kits that help individuals trace their ancestry, announced Sunday that it has filed for Chapter 11 bankruptcy in a Missouri court to facilitate the sale of its business and maximize its value.

Despite the bankruptcy process, the company plans to continue its normal operations and assured customers that there would be no changes to how it stores, manages, or protects its data, the company said in a press release.

23andMe Opts for Court-Supervised Sale to Overcome Financial Challenges

Mark Jensen, Chair and member of 23andMe's Special Committee, said that after evaluating different options, the company decided that a court-supervised sale would be the best way to maximize its business value.

This process aims to address financial and operational challenges, including reducing costs and resolving legal and lease-related issues.

Jensen also acknowledged the commitment of employees and assured them of support during the transition. Protecting customer data remains a priority, and transparency in managing user information will be a key factor in any potential sale.

23andMe Secures $35M to Continue Operations

23andMe has secured a commitment for debtor-in-possession (DIP) financing of up to $35 million from JMB Capital Partners. If approved by the court, this funding, along with the company's ongoing revenue, is expected to help sustain operations during the bankruptcy proceedings.

The decision to begin bankruptcy proceedings came after the Special Committee rejected the latest acquisition offer from co-founder and CEO Anne Wojcicki and her affiliates on March 10. This proposal was officially disclosed in an amended Schedule 13D filing with the Securities and Exchange Commission on March 11.

Company Cuts Workforce by 40%

Wojcicki, who has been attempting to sell the company since April, resigned following several failed takeover attempts. 23andMe has already reduced its workforce by 40%. In November, the company also stopped developing all its therapies to cut costs as part of a restructuring plan, Reuters reported.

Joe Selsavage, the CFO, will temporarily replace Wojcicki, who has been trying to sell 23andMe since April but faced resistance from the board. Wojcicki plans to make another bid during the bankruptcy process, though details have not been shared.

California AG Urges 23andMe Users to Delete Genetic Data

California Attorney General Rob Bonta last week issued a warning to 23andMe users, urging them to delete their data following the company's filing for Chapter 11 bankruptcy protection in the U.S. Known for its saliva-based DNA test kits that help individuals trace their ancestry, 23andMe holds a significant amount of sensitive consumer data.

Given the volume of personal information the company manages, Bonta reminded Californians that they have the right to request the deletion of their genetic data under state privacy laws, including the Genetic Information Privacy Act (GIPA) and the California Consumer Privacy Act (CCPA).

"California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data," Bonta said in an official statement, adding, "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."

To delete genetic data from 23andMe, consumers can follow these steps:

• Log in to their 23andMe account on the company's website.
• Go to "Settings" in their profile.
• Scroll down to find the "23andMe Data" section at the bottom of the page.
• Click "View" next to "23andMe Data."
• Download their data (optional): If they want a copy for personal records, they should download it before deleting their account.
• Find the "Delete Data" section and click "Permanently Delete Data."
• Confirm the request by checking their email from 23andMe and following the link provided to finalize the deletion.