SmileDirectClub Shuts Down Months After Filing For Chapter 11 Bankruptcy Protection

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SmileDirectClub Shuts Down Months

SmileDirectClub is shutting down — just months after the struggling teeth-straightening company filed for bankruptcy protection. – New York AP.

In their Friday announcement, SmileDirectClub said that it had taken an “incredibly difficult decision to wind down its global operations, effective immediately.”

This leaves all the existing customers in limbo. SmileDirectClub’s aligner therapy through the telehealth platform is not available anymore; the Tennessee-based company said while they were urging the consumers to consult the local dentist for further treatments. The customer care support has also reduced.

Customer orders that have not yet been shipped were canceled and the “Lifetime Smile Guarantee” is no longer existent, the company had said. SmileDirectClub also apologized for causing inconvenience and said that the additional information about the refunding requests will come “once the bankruptcy process determines next steps and additional measures customers can take.”

SmileDirectClub had also said that the Smile Pay customers would continue to make their payments, which would lead to a lot more confusion and online frustration. A spokesperson of the company said on Monday that the company could not comment any further.

SmileDirectClub had filed for Chapter 11 bankruptcy protection by the end of September. At this time, the company had reported approximately $900 million in debt. On Friday, the company had said that it was not able to find any partner who was ready to bring in capital that was enough to keep the company afloat, in spite of a month-long search.

When SmileDirectClub was made public back in 2019, the company had its value at around $8.9 billion. However, its stocks had plummeted in value over time, as the company had proved to be heavily unprofitable over the years and faced a number of legal battles. In 2022, the company had reported a total loss of $86.4 million.

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Upasana is a budding journalist who has a keen interest in writing. She considers writing as therapeutic and is most confident when she writes. She is passionate about music, movies and fashion. She writes in a way that connects with the audience in a personal level. She is optimistic, fun loving and opinionated.

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