The saga of 23andMe, the pioneering DNA testing company co-founded by Anne Wojcicki, has taken a dramatic turn. After a year marked by strategic maneuvers to private ownership, Wojcicki has announced her resignation as CEO as the company prepares to navigate the turbulent waters of bankruptcy.

Over the past year, Wojcicki had ardently pursued taking 23andMe private, clearly stating her reluctance to entertain any external acquisition offers. However, as discussions unfolded, she softened her rigidity, showing a willingness to consider alternative proposals while continually expressing her desire to reacquire the company she helped establish. Recent months have illustrated a series of unfulfilled promises, negotiations, and ultimately, a failure to sway the board of directors, pushing 23andMe toward a filing for Chapter 11 bankruptcy protection.

The furious pace at which events unfolded began with a wave of boardroom changes. In light of these shifting sands, Wojcicki ruled as the sole remaining board member after the resignations of seven directors last September, all citing divergent views on the company’s trajectory. New leadership was rapidly needed, and a trio of independent directors was appointed to restore compliance with Nasdaq’s regulations.

When the special committee convened to assess Wojcicki’s offers — notably one that valued the company at 40 cents per share — their rejection was more than a simple denial. The committee cited a lack of premium for shareholders and insufficient financing assurances as the reasons for their decision. Consequently, even as Wojcicki’s assertion of increased openness toward third-party proposals emerged, her endeavors to secure ownership persisted.

Recent encounters further illustrate the unpredictability of 23andMe’s fortunes. After a non-binding proposal to acquire shares surfaced with an enticing offer of $2.54 per share — fully financed by New Mountain Capital alongside Wojcicki — hopes were dashed as the investment firm retracted its interest in late February. Still, Wojcicki persevered, presenting a revised proposal of 41 cents per share followed by an amended offer that included a milestone-based contingent value right. Despite these efforts, skepticism from minority shareholders grew, particularly as Zentree Investments increased its ownership stake, advocating for equitable treatment for all investors.

The fallout from these unfruitful negotiations culminated in the Sunday bankruptcy filing, which will result in a restructuring process overseen by the court. Wojcicki’s exit as CEO marks a significant shift, though her involvement as a board member remains. Joe Selsavage, previously the Chief Financial and Accounting Officer, is stepping in as interim CEO to guide the company through this precarious time.

Currently, 23andMe’s financial standing is precarious, with estimated assets between $100 million and $500 million set against similar liabilities. The firm’s revenue has deteriorated sharply, with a 27% decrease in annual figures largely attributed to dwindling demand for its testing kits. The company’s health became untenable, leading to the decision to sell its assets and explore the bankruptcy auction route.

The bidding process, expected to span 45 days, offers a faint glimmer of hope amid the chaos. Nonetheless, the challenges that lie ahead are significant. Bankruptcy auctions often yield reduced valuations, and with creditors including major players like Labcorp and Blue Shield of California, the road to recovery will be anything but easy.