
SmileDirectClub Files for Chapter 11 Bankruptcy Protection, Announces Financial Restructuring To Fund Ongoing Operations
SmileDirectClub, Inc. (Nasdaq: SDC), a leader in patient orthodontics, and its affiliated debtors, filed voluntary petitions for Chapter 11 bankruptcy relief in the United States Bankruptcy Court for the Southern District of Texas on September 29, 2023. The cases are scheduled for preliminary hearings with judge Christopher M. Lopez, and the Debtors have requested joint administration of the cases under Case No. 23-90786.
Following the filing, the company has unveiled a strategic move to undertake a comprehensive recapitalization process aimed at fortifying the company’s financial position and supporting its future operations. As part of this recapitalization effort, SmileDirectClub founders have pledged to inject a minimum of $20 million into the company, reinforcing its financial foundation and securing its near and long-term stability. Additionally, up to $60 million in extra capital is on the table, subject to specific conditions, including the successful conclusion of a marketing process. The founders’ stated that their significant investment demonstrates their commitment to SmileDirectClub’s mission and confidence in the recent launch of the SmileMaker Platform and CarePlus growth initiatives.
David Katzman, Chief Executive Officer of SmileDirectClub, expressed optimism about the company’s future. “At SmileDirectClub, we are dedicated to delivering a premium customer experience and assisting over 2 million customers in achieving the smiles they love. Today’s step ensures we are well-prepared to build upon the accomplishments of our SmileMaker Platform and CarePlus initiatives, and to continue our mission of providing safe, convenient, and effective oral care.”