SmileDirectClub is shutting down

>> Months after filing for bankruptcy, SmileDirectClub announced it was shutting down its global operations and halting its teethaligner treatments.

That leaves existing SmileDirectClub customers with a lot of questions and few available answers. The company is offering no more customer care support and few details about possible refunds are available yet. Multiple dental organizations and orthodontists also caution patients about safety concerns arising from “directto-consumer” dentistry.

SmileDirectClub — which served over 2 million people since its 2014 founding — once promised to revolutionize the oralcare industry by selling clear dental aligners that were marketed as a faster and more affordable alternative to braces. It sold its aligners directly to consumers by mail and in major retailers.

When SmileDirectClub's stock began trading on the stock market in 2019, the company was valued at about $8.9 billion. But the stock plummeted in value over time as the company proved to be unprofitable year after year. In 2022, SmileDirectClub lost $86.4 million. With its stock price tumbling, SmileDirectClub was pressured to spend on acquiring customers to demonstrate its business could grow, said

Eric Snyder, chairman of bankruptcy at the Wilk Auslander law firm.

“And then you combine that with the legal battles they had (and pushback) from orthodontics industry ... all those things together just made it really hard for them to stay competitive,” he added. “They've been losing just tremendous amounts of money over the last couple of years.

SmileDirectClub filed for Chapter 11 bankruptcy protection in September while reporting nearly $900 million in debt. And at the end of last week, it confirmed it was shutting down operations after being unable to find a partner willing to bring in enough capital to keep the company afloat.”