Bankrupt 23andMe to be bought by pharmaceutical company Regeneron for $256 million
Bankrupt 23andMe to be bought by pharmaceutical company Regeneron for $256 million
Show Caption
Hide Caption
How to delete 23andMe data
23andMe has filed for bankruptcy. Here's how you can delete your data.
Problem Solved
Genetic testing firm 23andMe is set to be acquired by drug company Regeneron Pharmaceuticals following its bankruptcy in March, the companies announced on Monday, May 19.
Regeneron purchased the pioneering company for $256 million at bankruptcy auction with the intent of using its genomic data to fuel drug discovery, the company said in a Monday statement.
More importantly to consumers who have privacy concerns during the proceedings, the pharmaceutical company promised to adhere to 23andMe's existing privacy policy, saying it will "prioritize the privacy, security and ethical use of 23andMe's customer data."
"As a world leader in human genetics, Regeneron Genetics Center is committed to and has a proven track record of safeguarding the genetic data of people across the globe, and, with their consent, using this data to pursue discoveries that benefit science and society," Aris Baras, senior vice president and head of the Regeneron Genetics Center, said in a statement.
23andMe will continue to operate as a personal genomics service, which initially gained notoriety as the first company that enabled customers to submit DNA via a home swab and receive a digital map of their ancestry in return.
The company filed for Chapter 11 bankruptcy in March and later agreed to allow a court-appointed overseer to monitor the use of genetic data collected from its 15 million users through the sale. Regeneron has agreed to allow an overseer to review its intended use of that data, as well.
Since a data breach in October 2023 impacted 6.9 million customers, 23andMe has faced scrutiny from customers and lawmakers alike.
In a statement on Monday, 23andMe chair of the Special Committee of the Board of Directors, said the company is "pleased to have reached a transaction that maximizes the value of the business and enables the mission of 23andMe to live on, while maintaining critical protections around customer privacy, choice and consent with respect to their genetic data."
The statement also thanked Regeneron for extending job offers to employees of impacted departments.
The sale is subject to the approval via bankruptcy proceedings and relevant regulatory bodies. It is expected to close in the third quarter.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Miami Herald
43 minutes ago
- Miami Herald
Popular women's retailer closing 30% of its stores
For those of us old enough to have been shopping at malls for decades, it's been awfully strange to watch retailers that have been around forever closing their doors permanently. Perhaps one of the strangest to see go was Forever21, the fast-fashion brand once so popular that people stood in long lines at their retail stores to snap up too-cheap-to-believe deals. Don't miss the move: Subscribe to TheStreet's free daily newsletter But the company was eventually overtaken by similar low-cost online retailers like Shein and Temu, and eventually had to admit defeat after declaring Chapter 11 bankruptcy twice. It closed the last of its physical locations at the beginning of May, vanishing into the ether as if it never was. Related: Popular home retailer prepares to file Chapter 11 bankruptcy Macy's is another mall staple that's been around seemingly forever. But as fewer people flock to department stores to buy clothing and home goods in favor of buying them online or from discount stores like Home Goods, Macy's has been forced to downsize. The company announced in January that it would close 66 of its locations this year as part of a plan to close 150 "underproductive stores" through 2026. So, while it's still afloat, it's obvious that it's struggling in the current climate. You may also see specialty stores like Volcom, Billabong, and Quicksilver disappear from your local mall soon. Parent company Liberated Brands filed for Chapter 11 bankruptcy in February and plans to close 100 locations, although the brands themselves will live on thanks to a well-timed save from an unnamed buyer. Now, another mall staple has announced that it will make major cuts to its locations, which means it may vanish from your local mall soon. Torrid, the plus-sized women's clothing store founded in 2001, announced during its Q1 earnings call that it was planning to downsize its retail footprint due to customer preference for online shopping. 'Digital continues to be our customers' preferred channel, now approaching 70% of total demand," CEO Lisa Harper said during the call. "We're accelerating our transformation to a more digitally-led business, which includes optimizing our retail footprint." Related: Dollar Tree raises red flag about unexpected customer behavior Harper went on to say that Torrid will close up to 180 underperforming stores this year, allowing the business to "reduce fixed costs and reinvest in areas that drive long-term growth, including customer acquisition and omnichannel enhancements." The fashion retailer currently operates 632 locations. The majority of the store closures are likely to happen in Q4, according to William Blair analysts Dylan Carden and Anna Linscott in talks with RetailDive. The company also reported a drop in net sales of 5% year over year and a net income drop of more than half, which may also be motivating this move. Torrid, however, sounds prepared to be resilient. "Leveraging the deep connection with our existing customers, of which 95% are engaged in our loyalty program, combined with strategic and targeted acquisition and retention efforts, this digital transformation will position us for efficient and accelerated top and bottom-line growth," Harper said during the earnings call. Harper also said that Torrid plans to refresh 135 stores in Q3, which she called "low-capital investments with an expected fast return." Despite only making up a quarter of its sales, Harper told analysts that its brick-and-mortar locations still played an important role for the brand. Stores "serve as community hubs and immersive brand-building experiences, introducing customers to our brand and sub-brands, offering the dressing room experience, and acting as service centers for purchases made online or in stores," she said. "Most importantly, our passionate sales associates bring the brand to life, delivering personalized service that deepens customer connection and drives long-term loyalty." Related: Struggling car company swiftly shuts down half its stores The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
43 minutes ago
- Miami Herald
Ashley Furniture store rival files for Chapter 11 bankruptcy
The furniture retail industry has faced challenges this year that have impacted both independent and chain stores' ability to remain in business. One of the top economic issues for furniture stores has been a slowdown in the real estate market in recent years, which has curtailed consumer spending on new furniture. When people buy that new house, they often will seek out new furnishings for each room in their home. Don't miss the move: Subscribe to TheStreet's free daily newsletter If consumers are not buying homes, they likely aren't buying furniture, as well. Related: Another popular furniture company files for Chapter 11 bankruptcy Fierce competition among furniture chains and independents has also forced retailers to spend more on advertising to showcase their products to consumers, which also cuts into profits. Independent furniture retailers have a major challenge to compete against well-known national retail chains like Ashley Furniture, Bob's Discount Furniture & Mattress, and Ethan Allen. Independent retailers have a mountain to climb to attract business away from the big-name chains whose names consumers are familiar with. Depressed furniture sales have also affected the manufacturing sector as several providers of products have shut down operations, and in some cases, filed for bankruptcy. North Carolina furniture manufacturer and supplier Progressive Furniture, which provides products to major retailers, has decided to close down its business at the end of the year and lay off all 30 of its employees, after its primary supplier in Mexico, which provided 60% of its products, decided to close its business. Progressive imports wooden furniture from both Asia and Mexico. Progressive Furniture, a subsidiary of ready-to-assemble furniture company Sauder Woodworking, sells its products through Walmart, Target, Home Depot, Lowe's, Amazon, Wayfair, and other furniture retailers. The company, which operates a warehousing and distribution plant in Claremont, N.C., said it will fulfill existing orders and honor warranties until it closes. It has no plans to file for bankruptcy. High-quality custom wood cabinetry manufacturer and retailer, Worthy's Run Furniture LLC filed for Chapter 11 bankruptcy protection on May 28 to reorganize its business. The Hagerstown, Md., furniture manufacturing and retail company filed its Subchapter V petition, listing up to $50,000 in assets and $100,000 to $500,000 in liabilities. The petition indicated that funds would be available for distribution to unsecured creditors. The company did not indicate a reason for filing for bankruptcy in its petition. And now, popular Long Island, N.Y., retailer 5th Avenue Furniture Warehouse Inc. filed for Chapter 11 bankruptcy protection to restructure its debts, facing a disputed tax claim. Related: Major health care provider files for Chapter 7 liquidation The Bay Shore, N.Y., furniture store filed its Subchapter V petition on June 6 in the U.S. Bankruptcy Court for the Eastern District of New York, listing $100,000 to $500,000 in assets and $1 million to $10 million in debts, including $2.37 million owed to its largest creditor, the New York State Department of Taxation & Finance. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The 5th Avenue Furniture chain currently only operates a single location, having closed two other stores in Shirley, N.Y., and Medford, N.Y., in recent years. The debtor sells furniture products from major manufacturers and distributors, including Ashley Furniture, AC Pacific Corp., and Holland House. Related: Popular restaurant chain files bankruptcy, closes locations The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
43 minutes ago
- Miami Herald
Beloved iconic local restaurant closing after 42 years
Unless you truly live in the middle of the woods, you probably have your fair share of restaurants to choose from when you want to grab lunch or dinner. Even in rural areas, it's common to have a variety of options. And in major suburbs and cities, your choices might be plentiful. You could walk down the street and choose from among a number of popular cuisines without having to search far and wide. Don't miss the move: Subscribe to TheStreet's free daily newsletter Still, when there's a restaurant you've known and loved for years, losing it can be a big blow. Related: Beloved Mexican restaurant closing iconic location after 63 years There might be a similar restaurant five minutes away that serves almost the exact same menu. But if a go-to restaurant of yours has the one special dish that always tastes great, it can be a very sad thing to see that establishment disappear. The past few years have been tough for restaurants across the board. In 2020, dining establishments had to close to in-person service for a period of time thanks to the Covid pandemic. And even once restaurants reopened, many grappled with supply chain issues, labor shortages, and rising costs. Related: Chipotle wants to give out more free burritos Lingering inflation has also driven a lot of people away from restaurants. When living costs are high, consumers have to prioritize. That means they can't drop $80 on dinner for two when that same amount of money could potentially buy food for an entire week. Not surprisingly, a number of popular restaurant chains have filed for bankruptcy and/or closed their doors since 2020. About a year ago, Red Lobster filed for Chapter 11, despite having a loyal fan base. And fast-casual chain TGI Fridays filed for bankruptcy about seven months ago, citing financial challenges. You'd think that restaurants situated in major cities would see their fair share of business. But sometimes, being centrally located can be a mixed bag. Being in a prime location gives you access to more customers. But it's sort of like being in a mall. When there's just too much competition around, you can easily lose business. Related: Costco makes surprising food court change to iconic menu item Also, when you're occupying prime real estate, it can be challenging to negotiate favorable lease terms with your landlord. Or, your landlord might decide it wants to do something different with its space. Despite its popular location along West Hollywood's Sunset Strip, beloved restaurant Chin Chin has announced that it's slated to close at the end of July. The restaurant first opened its doors to West Hollywood customers in 1983 and is known for its classic Chinese menu, including its signature Chinese chicken salad with wonton strips. Chin Chin has additional locations in Brentwood, Studio City, and Las Vegas that will remain open. The West Hollywood location is shuttering after the restaurant's landlord opted not to renew its lease. "At the last minute, I think the landlord had a change in vision for the place, and as much as we wanted to be part of that, Chin Chin just wasn't part of their vision," David Choi, a partner in the restaurant, told the LA Times. "It was just a very sudden change, and so we were kind of left scrambling." Chin Chin does hope to reopen in a new location but is still searching for its next home. In the meantime, the restaurant has launched a GoFundMe campaign to support employees during the transition. In an Instagram post announcing the closure, Chin Chin said, "We are heartbroken to announce that Chin Chin will be unexpectedly closing its doors at our Sunset Plaza location." More Fast Food & Restaurant News: Starbucks makes shocking pricing move customers will loveBankrupt restaurant chain offers new deal, stiff drinkNew Taco Bell menu items combines multiple classics Fans can still dine at the West Hollywood location through July 27. Related: KFC's newest restaurant concept has customers obsessed The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
