(WJET/WFXP) — 23andMe has filed for bankruptcy and will be seeking to sell the ancestry company, a move that comes a month after it agreed to a settlement related to a 2023 data breach. Along with its well-known genetic testing service, the company also operates a national online doctor's offic e that offers "medical care, pharmacy fulfillment, and laboratory testing services." The company plans to sell "substantially all of its assets" as part of its Chapter 11 proceedings. The winning bidder would have to comply with applicable privacy laws pertaining to the storage, management, and protection of customer data. According to court documents, 23andMe holds $277 million in assets, with $214 million in debt. The company intends to continue operations as normal, including how the company stores, manages or protects sensitive customer data. Last month, the company agreed to pay $30 million and offer three years of security monitoring to settle a lawsuit that accused the company of failing to protect the privacy of 6.9 million customers affected by a 2023 data breach. Recent attacks on Tesla cars has some owners worried The company, once valued at over $6 billion, has quickly plummeted in value and now sits at just under $50 million. This marks a 92% decrease from 2022 and an 80% drop in the past year alone.  “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," said Mark Jensen, Chair and member of the Special Committee of the Board of Directors. "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 bankruptcy follows the Special Committee's rejection of the final non-binding acquisition proposal made by 23andMe CEO and co-founder Anne Wojcicki and certain of her affiliates on March 10. According to Reuters, her most recent offer was $0.41 per share, representing an 84% reduction from the previous month's offer. In a post on X, Wojcicki said, in part, "While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company and I intend to be a bidder. I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder. " 23andMe has secured $35 million in funding to maintain operations during the restructuring process. Along with the bankruptcy filing, Wojcicki has resigned as CEO effective immediately and will be replaced by the current CFO Joe Selsavage on an interim basis. In September 2024, all of 23andMe's independent directors resigned from its board following drawn-out negotiations with Wojcicki, who wants to take the company private. The directors said they would be resigning effective immediately — arguing that, while they still believed in 23andMe’s mission, their departures were for the best due to Wojcicki’s concentrated voting power and a “clear” difference of opinion on the company’s future. Despite being in business for 18 years and raising $861 million from investors, the company has yet to turn a profit, with its stocks hovering around $1.80 at the time of writing. The Associated Press contributed to this report. ...read more read less