Dental aligner company SmileDirectClub Inc. filed for bankruptcy four years after raising $1.35 billion in an initial public offering.
The Chapter 11 filing in Texas on Friday allows the company to continue operating while it works out a plan to repay creditors. The company’s founders will invest at least $20 million into the company as part of its reorganization, according to a statement.
Nashville, TN-based SmileDirectClub listed $499 million of assets and more than $1 billion of liabilities in its bankruptcy petition. The company makes plastic aligners that can straighten teeth at a fraction of the price of conventional braces and markets its wares directly to consumers. Its 2019 initial public offering valued the company at $8.9 billion, and made its founders billionaires, Bloomberg reports. Read more.
