SmileDirectClub's Sudden Collapse Leaves Customers in Limbo
SmileDirectClub, the tooth straightening startup once valued at $8.9 billion, is shutting down after a last-minute effort to save the company collapsed. The publicly traded company, which filed for bankruptcy in September, had been negotiating a deal for its founders to provide fresh capital and buy it out of Chapter 11. However, the deal fell through as the company failed to secure the support of its most important lender and other creditors. SmileDirectClub struggled with declining revenues, a patent fight with a rival, and reduced sales and marketing during the pandemic. The company had nearly $900 million of debt at the time of its bankruptcy filing.