SmileDirectClub's Bankruptcy Filing Marks Major Setback for Company

SmileDirectClub, a tooth alignment company, has filed for Chapter 11 bankruptcy protection due to years of losses, weak sales, and nearly $850 million in long-term debt. The company plans to continue normal operations with an investment of at least $20 million from its founders. An additional $60 million in capital is available upon certain conditions. SmileDirectClub aims for a brief restructuring process and is being represented by legal counsel Kirkland & Ellis, financial adviser FTI Consulting, and investment banker Centerview Partners. Since going public in 2019, the company has faced challenges, including safety concerns and supply chain inflation, and has yet to turn a profit.