SmileDirectClub
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
SmileDirectClub was a Nashville-based direct-to-consumer teledentistry company founded in 2014 by Jordan Katzman and Alex Fenkell. It sold clear teeth aligners online and through its shops for about $1,850—marketed as a faster, cheaper alternative to braces—financed largely through its SmilePay installment program. Its 2019 IPO valued it at almost $9 billion, and it served more than 2 million customers worldwide.
02 / SmileDirectClub FAILURE REASONS
Failure reasons
SmileDirectClub was never profitable and faced sustained criticism from dental and medical groups over its remote-orthodontics model. It filed for Chapter 11 on September 29, 2023 with nearly $900 million in debt. No buyer came forward; a last-ditch proposal by the founders—$30 million in debt plus $25 million in new equity for 100% of the reorganized firm—failed. On December 8, 2023 the company announced it would cease global operations immediately and convert the Chapter 11 into a Chapter 7 liquidation (completed January 26, 2024), stranding tens of thousands of mid-treatment customers.
03 / EVENT HISTORY
Events in the structured record
- Founded
SmileDirectClub founded in Nashville; sells clear aligners direct to consumers.
- IPO
SmileDirectClub's IPO values it at almost $9 billion.
- Bankruptcy and shutdown
On September 29, 2023 the company files for Chapter 11 with nearly $900 million in debt. After a failed founder-led rescue bid, it announces on December 8, 2023 that it will cease all operations immediately and convert to Chapter 7 liquidation; about 1,000 workers lose their jobs.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
At the September 29, 2023 Chapter 11 filing, SmileDirectClub reported nearly $900 million in debt (liabilities, not a disclosed loss).
- 02
Founders proposed $30M debt + $25M equity to take 100% of the reorganized firm; the bid failed.
- 03
Operations ceased December 8, 2023; Chapter 11 converted to Chapter 7 on January 26, 2024.
- 04
No reliable company-level loss figure with subject/period/basis was disclosed.