23andMe (ME) filed for Chapter 11 bankruptcy protection on Monday to help facilitate a potential sale while Anne Wojcicki resigned as chief executive, less than a month after she attempted to acquire the genetic testing firm.

The company initiated the voluntary proceedings in the US Bankruptcy Court for the Eastern District of Missouri to conduct a sale process to maximize its value and resolve liabilities. 23andMe said it's seeking court approval to divest substantially all of its assets by actively soliciting bids, while it plans to continue operating throughout the process.

"After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business," Chair Mark Jensen said in a statement. "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."

Simultaneously, 23andMe announced that Wojcicki resigned from her post but will continue to serve on its board. The company appointed Chief Financial and Accounting Officer Joe Selsavage as interim CEO and Matt Kvarda, a managing director at consulting firm Alvarez & Marsal, as chief restructuring officer.

Shares of the company dropped 44% in the most recent premarket activity. The shares have plunged almost 80% over the last year.

Earlier in March, Wojcicki made an offer to acquire all the shares in the genetics and research firm she and her affiliates didn't own for $0.41 apiece. A special committee of 23andMe's board rejected the offer, saying it represented an 84% decrease to a joint proposal submitted by Wojcicki and her co-bidder in February. The company rejected a final bid from Wojcicki on March 10.

23andMe has secured up to $35 million in debtor-in-possession financing commitments, and is seeking court approval to pay employee wages, compensate certain vendors and suppliers and reject contracts including real estate leases to reduce operating expenses.

Any buyer needs to comply with laws over handling customer data, and data privacy "will be an important consideration in any potential transaction," Jensen said. The company offers DNA testing for consumers to learn about their ancestry and health.

In September 2024, the company reportedly agreed to pay $30 million and provide three years of security monitoring to settle a lawsuit related to a cybersecurity breach that happened a year earlier. 23andMe said Monday it plans to use the proceedings to resolve legal liabilities stemming from the incident.