CUSTOMERS are disappointed after a major cosmetic company filed for Chapter 11 bankruptcy.
The company has been providing direct-to-consumer dental products for nearly 10 years.
SmileDirectClub filed for Chapter 11 bankruptcy protection last week with the founders pledging $20million to recapitalize the company.
The teeth-straightening business was started in 2014 to provide clear aligners as a telehealth rival to traditional dentistry tools like Invisalign.
Despite its affordable prices, SmileDirectClub has suffered from years of weak sales and losses.
It is close to $850million in long-term debt, reports yahoo! Finance.
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SmileDirectClub has been a public company since September 2019.
Share prices have plummeted from a peak of $20.55 to just 15 cents as of October 2.
Smile Direct Club is expected to continue operations as normal amid the bankruptcy.
That includes its 105 physical clinics, which will remain open.
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However, some on social media have taken the opportunity to share their thoughts on the situation.
“They’re not smiling now,” snarked one on X, formerly known as Twitter.
“I just started my treatment and now I’m worried,” wrote one customer on Reddit.
Another posted to the thread: “I think this company actually did an incredible thing and I think their financial state is really sad.”
SmileDirectClub is not the only retailer to experience bankruptcy this year.
BANKRUPT BONANZA
Big-name brands Bed Bath and Beyond, Party City, and David’s Bridal have also filed for Chapter 11 in 2023 - but all have survived in some form.
Meanwhile, pharmacy chain Rite Aid could be headed for bankruptcy, according to the Wall Street Journal.
Rite Aid executives have forecasted earning losses between "approximately $650 million and $680 million" in 2024 amid opioid lawsuit payouts
The company also has $3.3billion in debt.
Read More on The US Sun
Joanne is the latest retailer to be identified as at-risk of going bust.
And see which fashion store is “teetering on bankruptcy.”
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