SmileDirectClub closes its doors, months after filing for bankruptcy

The telehealth company, which sold dental aligners to two million customers, was unprofitable and had been criticized by groups medical.

SmileDirectClub, a telehealth company that sold teeth straightening devices by mail and which faced criticism from medical groups, announced Friday that it was closing.

The company, founded in 2014, sold dental aligners online and in its stores for $1,850. He marketed them as a quicker and cheaper alternative to braces. SmileDirectClub's IPO in 2019 valued it at $8.9 billion.

SmileDirectClub has served more than two million customers for nearly a decade. But the company was unprofitable and filed for Chapter 11 bankruptcy in September with nearly $900 million in debt, according to court filings and financial statements. And this year, it settled a lawsuit brought by the District of Columbia attorney general's office that accused the company of using confidentiality clauses to stifle consumer criticism.

Friday, SmileDirectClub said. on its website that it was immediately shutting down its global operations. She apologized to customers for the inconvenience and urged them to consult a doctor or dentist about future treatment.

Current orders have been canceled, the company said. Customers on a monthly installment payment plan must continue to make all their payments. Those who have completed the treatment will no longer be able to benefit from the free touch-ups guaranteed by the company.

For customers requesting a refund, SmileDirectClub said it will have more 'information "once the bankruptcy process will determine the next steps."

SmileDirectClub was founded in Nashville by childhood friends Alex Fenkell and Jordan Katzman. order its products, customers made a mold of their teeth at home with a kit sent by the company or had their teeth scanned at a “SmileShop” point of sale. The scans were examined by dentists and orthodontists from the network of the company.

SmileDirectClub's services, which did not require in-person visits, had drawn criticism from dental and orthodontist groups. The company sued some of these critics and accused the California dental board of stifling competition.

After its IPO, the company's shares traded at around $18 coin, but later became a penny stock. . As the company failed to turn a profit, it also faced legal battles throughout its existence and disgruntled customers who accused it of false advertising and violating food regulations. and Drug Administration.

SmileDirectClub offered refunds within 30 days of the arrival of its aligners, but everything after that was considered outside the box. the company's official refund policy and came with a nondisclosure clause, The New York Times reported in 2020. The agreement prohibited customers from telling others about the refund and required them to remove posts and negative reviews on social media.

The District of Columbia Attorney General's Office sued the company in 2022, accusing it of blocking customers who had been harmed by its products to file complaints with regulators or law enforcement. Under a settlement to resolve the litigation earlier this year, SmileDirectClub had to release more than 17,000 customers from the agreements and pay $500,000 to the district. The company said in the settlement that it did not violate the law or engage in unfair or deceptive practices.