SmileDirectClub is shutting down — simply months after the struggling teeth-straightening firm filed for chapter safety.
In a Friday announcement, SmileDirectClub mentioned it had made an “incredibly difficult decision to wind down its global operations, effective immediately.”
That leaves present clients in limbo. SmileDirectClub’s aligner remedy by its telehealth platform is not obtainable, the Nashville, Tennessee, firm said whereas urging shoppers to seek the advice of their native dentist for additional remedy. Buyer care help for the corporate has additionally ceased.
Buyer orders that haven’t shipped but have been cancelled and “Lifetime Smile Guarantee” not exists, the corporate mentioned. SmileDirectClub apologized for the inconvenience and mentioned extra details about refund requests will arrive “once the bankruptcy process determines next steps and additional measures customers can take.”
SmileDirectClub additionally mentioned that Smile Pay clients are anticipated to proceed to make funds, resulting in additional confusion and frustration on-line. When contacted by The Related Press Monday for extra info, a spokesperson mentioned the corporate couldn’t remark additional.
SmileDirectClub filed for Chapter 11 chapter safety on the finish of September. On the time, the corporate reported almost $900 million in debt. On Friday, the corporate mentioned it was unable to discover a accomplice keen to usher in sufficient capital to maintain the corporate afloat, regardless of a monthslong search.
When SmileDirectClub went public again in 2019, the corporate was valued at about $8.9 billion. However its inventory quickly tumbled and plummeted in worth over time, as the corporate proved to be unprofitable 12 months after 12 months and confronted a number of authorized battles. In 2022, SmileDirectClub reported a loss of $86.4 million.
SmileDirectClub, which has served over 2 million folks since its 2014 founding, as soon as promised to revolutionaize the oral care trade by promoting clear dental aligners (marketed as a quicker and extra reasonably priced various to braces) on to shoppers by mail and in major retailers. However the firm has additionally seen pushback from inside and past the medical group.
Final 12 months, District of Columbia legal professional normal’s workplace sued SmileDirectClub for “unfair and deceptive” practices — accusing the corporate of unlawfully utilizing non-disclosure agreements to control on-line evaluations and hold clients from reporting unfavorable experiences to regulators. SmileDirectClub denied the allegations, however agreed to a June settlement settlement that required the corporate to launch over 17,000 clients from the NDAs and pay $500,000 to D.C.
The British Dental Affiliation has additionally been important about SmileDirectClub and such distant orthodontics — pointing to circumstances of superior gum illness supplied with aligners, misdiagnosis dangers and extra in a Sunday post on X, the platform previously generally known as Twitter.
“It shouldn’t have taken a bankruptcy to protect patients from harm,” the British Dental Affiliation wrote, whereas calling on U.Okay. regulators for elevated protections. “Dentists are left to pick up the pieces when these providers offer wholly inappropriate treatment.”
