Smile Direct Club closes months after bankruptcy filing, leaving patients in limbo and wondering where to turn for treatment
Online dental treatment Smile Direct Club has closed just three months after filing for bankruptcy, leaving patients unsure if their expensive treatments will be completed.
The company once valued at $8.9 billion announced on Friday the “incredibly difficult decision to immediately wind down its global operations.”
In the midst of the shutdown, many customers have been left in the lurch during their teeth alignment treatment, which is estimated to take four to six months.
'Bruh!! Smile Direct Club, the company I cut my teeth with and paid in full and am only a few months into my treatment, has just gone bankrupt and closed down the business. Omggg,” said one commenter on Facebook.
The company officially announced in September that it would file for bankruptcy, but promised that it would “continue to provide its customers with affordable and accessible oral care without interruption.”
The telehealth company was founded in 2014 by Jordan Katzman (left) and Alex Fenkell (right)
Smile Direct Club closed Friday after first filing for bankruptcy in late September
“We apologize for the inconvenience, but aligner treatment is no longer available through the SmileDirectClub platform,” the site said.
'If you wish to continue treatment outside of our platform, please consult your treating physician or your local dentist if you have any questions about future treatment with aligners.'
According to the company's website, customers who ordered aligners that were not shipped will be canceled.
In addition to discontinuing their aligner service, the company has also eliminated the Lifetime Smile Guarantee program, which “protects your smile for life.”
Thanks to the aligner service, people got more straight teeth. It used a retainer-like system that was clear and easily removable, instead of the metal that many remember from their youth.
The program gave dissatisfied customers the chance to return their aligners for a full refund within the first 30 days, but that will no longer happen due to Chapter 11 bankruptcy.
Customers who are part of the company's monthly payment program, known as SmilePay, are still “expected to continue making all monthly payments until payment is made in full,” according to the website.
Any customers seeking reimbursement from the company will receive more information about that process “once the bankruptcy process determines next steps.”
Many disheartened customers have taken to social media to share their concerns about the treatment, with one saying: 'Disgusting how we've all been treated… I've just signed up for my aligners, made my first payment and now I will don't even do it anymore. received my braces.'
The company created a more affordable and discreet option for teeth straightening by selling clear aligners online for around $2,000
Another said the bankruptcy announcement is “heartbreaking” as they are in the middle of treatment.
“Smile Direct Club loves this,” said another person on X (formally known as Twitter).
The company's end became official after a scheduled hearing “to consider conditional relief” on Friday in the U.S. Bankruptcy Court for the Southern District of Texas.
The telehealth company was founded in 2014 by Jordan Katzman and Alex Fenkell, who were named the youngest billionaires in the US in 2019.
Katzman and Fenkell launched the company in Michigan before moving it to Nashville, Tennessee, because they wanted to make invisible dental liners more affordable than traditional braces from an orthodontist.
Smile Direct Club aligners cost about $2,000, a fraction of the cost of braces that sell for about $5,000.
Customers who purchased the aligners online were then sent supplies to make molds of their teeth at home. They would then be assigned to registered dentists for regular check-ups.
Customers who are part of the company's monthly payment program, known as SmilePay, are still “expected to continue making all monthly payments until payment is made in full,” according to the website.
Fenkell with Smile Direct Club Chief Financial Officer Kyle Wailes during a 2019 interview
In addition to a huge online presence, Smile Direct Club was also a hit with major brokers, such as Walmart and CVS, who sold their products. Products were also made available on Amazon.
DailyMail.com contacted Smile Direct Club but did not receive a response in time for this report.
According to Business insiderKatzman and Fenkell, who became friends at a young age, came up with the idea for their business after they both wore metal braces.
They set out to find a cheaper and less embarrassing way to straighten teeth and did so by securing financing from Camelot Venture Group, Katzman's father's investment company.