NEW YORK – 23andMe said late Wednesday that the US Bankruptcy Court for the Eastern District of Missouri approved its motions to continue paying employees and certain vendors, and to sell its assets, including its customers' genetic information.
The beleaguered company filed for Chapter 11 bankruptcy protection earlier this week after failing to find a buyer on its own and after repeated attempts by CEO Anne Wojcicki to take the company private herself.
Sunnyvale, California-based 23andMe will be taking bids on its assets through mid-May. After a hearing scheduled for June 17, the court will make a final decision on a buyer.
While 23andMe's trove of consumer genetic health and ancestry information is by far its most valuable asset, customers have been rushing to request that their data be permanently deleted following consumer alerts issued by several state attorneys general. Enough did so over the course of this week that according to Bloomberg and other news outlets, the company's website has experienced delays due to increased traffic.
The company said in a statement that any sale and transfer of customer data will be subject to notice and oversight and approval by the court, as well as customary regulatory approvals. Potential buyers must agree to comply with 23andMe's consumer privacy policy and all applicable laws with respect to the treatment of customer data.
The bankruptcy case is also expected to resolve legal issues related to the 2023 data breach, in which hackers accessed the data of millions of customers. A hearing is scheduled for April 22 to consider additional relief requested by the company.