What’s going on with SmileDirectClub? Here’s what to know about the company’s downfall.
SmileDirectClub, the telehealth teeth-straightening company, is shutting down after having declared Chapter 11 bankruptcy, leaving its customers in limbo.
SmileDirectClub, the telehealth teeth-alignment company that once promised to transform the dental industry, has shut down months after filing for bankruptcy protection.
The company filed for Chapter 11 bankruptcy protection in late September, reporting nearly $900 million in debt. Last Friday, SmileDirectClub said it was halting global operations, “effective immediately,” adding that it couldn’t secure a partner willing to bring in the capital needed to salvage things.
Now, customers say the abrupt announcement is leaving them frustrated and in limbo — they’re expected to continue to pay for aligners but can no longer access their online profiles or receive customer support. Discourse surrounding the splashy company’s shutdown has since extended to Reddit, TikTok, and Instagram. Dentists are also concerned.
Here are eight things to know.
What is SmileDirectClub?
The nine-year-old company was marketed as an affordable and convenient alternative to braces, minimizing orthodontist visits and offering virtual and mail options for its patients.
SmileDirectClub says it served more than 2 million people since launching. The company went public in 2019 and was valued at about $8.9 billion, turning its founders into billionaires.
Its alignment trays promised customers new smiles in weeks, depending on the severity of their misalignment. But dentists warned clients that the company’s claims were deceptive and could lead to bigger issues down the road.
How was the company received?
On its face, SmileDirectClub was popular — it had more followers than Invisalign on Instagram and ran buzzy ad campaigns on TikTok.
But over time, SmileDirectClub’s stock plummeted as the company failed to be profitable. The company faced multiple legal battles and disputes with customers and figures in the dental industry. In 2022, SmileDirectClub reported a loss of $86.4 million.
What kind of legal battles?
Last year, the District of Columbia attorney general’s office sued SmileDirectClub for “unfair and deceptive” practices, accusing the company of unlawfully using nondisclosure agreements to manipulate online reviews and keep customers from reporting negative experiences to regulators.
SmileDirectClub denied the allegations, but reached a settlement in June that required the company to release over 17,000 customers from the agreements and pay $500,000 to the District.
According to the California Dental Association, customers were required to sign NDAs and delete public posts or critical reviews about SmileDirectClub to be eligible for refunds. The settlement required the company to overturn those conditions.
What are the details surrounding the bankruptcy filing?
SmileDirectClub filed for bankruptcy in September and was negotiating a deal to bring in new investors and capital to keep the company afloat.
But on Friday, SmileDirectClub attorney Spencer Winters said in bankruptcy court that the efforts fell apart.
“We pushed very, very hard this week and it just didn’t come together,” Winters told U.S. Bankruptcy Judge Christopher Lopez.
That day, the company announced its shutdown publicly. Customers said they weren’t given advance notice.
On Reddit, some customers described arriving at one of SmileDirectClub’s brick-and-mortar locations for appointments last week only to be turned away.
How will the shutdown impact customers?
Once SmileDirectClub announced it would immediately shut down, the company’s website appeared scrubbed except for an FAQ page. Customers said they weren’t able to log on to their accounts, manage their payments, or access their X-rays and digital scans easily. Customers have been discussing workarounds on Reddit.
Customers who were mid-treatment have described feeling abandoned and “outraged.” Some say they’re waiting for their remaining retainer trays, others are concerned they won’t be able to find an orthodontist who will continue their care, but don’t want to have to start from scratch.
SmileDirectClub said new aligners are no longer available. The company recommended customers who have trays consult with their doctor or local dentist. It has also rescinded its “Lifetime Smile Guarantee.”
What has SmileDirectClub said?
On its FAQ page, SmileDirectClub said customers are still expected to pay for their monthly aligner trays. The company added that more information was to come “once the bankruptcy process determines next steps and additional measures customers can take.”
The company has declined comment to media outlets since news of the shutdown broke.
What are dentists saying?
Dentists and orthodontists are expressing frustration and voicing concern for the company’s customers.
The British Dental Association has been critical about SmileDirectClub and similar remote orthodontics — pointing in a Sunday post on X (formerly Twitter) to cases of advanced gum disease, risks of misdiagnosis, and other issues patients faced.
Some pros have playfully posted a version of a meme that originally came from the set of CW’s The Flash with Grant Gustin, the actor playing Flash, kneeling and holding a peace sign next to the grave of the Green Arrow’s character. But for this version, the tombstone is labeled “SmileDirectClub” while Gustin is labeled as “general dentists & orthodontists.”
“It shouldn’t have taken a bankruptcy to protect patients from harm,” the British Dental Association wrote, while calling on U.K. regulators for increased protections. “Dentists are left to pick up the pieces when these providers offer wholly inappropriate treatment.”
What about that rumor about employees walking out?
A fake rumor that SmileDirectClub’s bankruptcy was sparked by an employee-led mutiny after an email about salaries got into the wrong employee’s hands has been spreading online.
The original video was posted by a creator who makes satirical videos, but users in the comments section repeatedly suggested it was about SmileDirectClub. There is no verifiable evidence that SmileDirectClub was brought down by an employee email.
The Associated Press contributed to this article.