NEW YORK (AP) — SmileDirectClub is closing — just months after the struggling teeth-straightening company filed for bankruptcy protection.
In a statement on Friday, SmileDirectClub said it had made an “incredibly difficult decision to end its global operations, effective immediately”.
This leaves existing customers in the lurch. SmileDirectClub’s alignment therapy through its telehealth platform is no longer available, Nashville, Tennessee company he said, while urging consumers to consult their local dentist for further treatment. Customer service support has also stopped.
Customer orders that have not yet shipped have been canceled and the “Lifetime Smile Guarantee” no longer exists, the company said. SmileDirectClub apologized for the inconvenience and said they would receive additional information about refund requests “when the bankruptcy process determines the next steps and additional steps customers can take.”
SmileDirectClub also said Smile Pay customers are expected to continue making payments, leading to further confusion and frustration online. A company spokesman on Monday said the company could not comment further.
SmileDirectClub filed for Chapter 11 bankruptcy protection in late September. At the time, the company reported nearly $900 million in debt. On Friday, the company said it was unable to find a partner willing to bring in enough capital to keep the company afloat, despite a months-long search.
When SmileDirectClub went public in 2019, the company was valued at approximately $8.9 billion. But its stock value plummeted over time as the company proved unprofitable year after year and faced multiple legal battles. In 2022, SmileDirectClub reported loss of $86.4 million.
SmileDirectClub, which has served over 2 million people since its inception in 2014, once promised to revolutionize the oral care industry by selling clear dental aligners (marketed as a faster and more affordable alternative to braces) directly to consumers by mail and large retailers. But the company has also seen pushback from within and outside the dental community.
Last year, the District of Columbia attorney general’s office sued SmileDirectClub for “unfair and deceptive” practices — accusing the company of illegally using nondisclosure agreements to manipulate online reviews and prevent customers from reporting negative experiences to regulators. SmileDirectClub denied the allegations, but reached a settlement agreement in June that required the company to release more than 17,000 customers from NDAs and pay $500,000 to the district.
The British Dental Association was also critical of SmileDirectClub and similar remote orthodontics — showing on Sunday post on Xthe platform formerly known as Twitter, about cases of advanced gingivitis, risks of misdiagnosis and other topics.
Bankruptcy should not be needed to protect patients from harm, British Dental Association He wrote, while calling on UK regulators for increased protection. “Dentists are left to pick up the pieces when these providers offer completely inappropriate treatment.”
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