DNA testing firm 23andMe has filed for Chapter 11 bankruptcy protection, marking a significant turning point for the company that was once valued at $6 billion. The move comes as the company struggles to find a bidder and address its operational and financial challenges. Anne Wojcicki, 23andMe's co-founder and CEO, has stepped down with immediate effect to become an independent bidder for the company.

In a statement, Mark Jensen, chair and member of the Special Committee of the Board of Directors, explained that the court-supervised sale process is the best path forward to maximize the value of the business. The company aims to address its operational and financial challenges, including further cost reductions and the resolution of legal and leasehold liabilities.

23andMe is best known for its at-home gene testing kits that use a customer's saliva to dig into their ancestry. Despite its popularity, the company has failed to turn a profit since going public in 2021. In September, the company settled a lawsuit for $30 million that alleged it had failed to protect the data of almost seven million customers during a data breach in 2023. In November, the company announced it was cutting 40 percent of its workforce.

The company's financial struggles are a far cry from its peak valuation of $6 billion in 2021. Today, the company is valued at just $50 million. Wojcicki, who has taken accountability for the company's challenges, expressed her unwavering belief in the company's future.

Despite the bankruptcy filing, 23andMe says it intends to continue operating its business throughout the proceedings. Customers' access to data and subscriptions will not be affected. Joe Selsavage, the company's chief financial and accounting officer, will step in as interim CEO.

The bankruptcy filing and CEO's departure raise questions about the future of the company and the DNA testing industry as a whole. As 23andMe navigates this challenging period, it remains to be seen how the company will emerge from its financial struggles and what implications this will have for the industry.

In the meantime, 23andMe's customers will be watching closely to see how the company's bankruptcy filing affects their access to data and services. The company's commitment to continuing operations throughout the proceedings will be crucial in maintaining customer trust and confidence.

As the DNA testing industry continues to evolve, the fate of 23andMe serves as a reminder of the challenges and risks associated with innovation and growth. The company's story serves as a cautionary tale for startups and entrepreneurs, highlighting the importance of sustainable business models and responsible financial management.