We know our customers trust us with one of their most important assets – their smile – and we take that trust seriously. In turn, we’ve always been committed to having a strong business to support our mission to help everyone get a smile they love.
Today, we took on an important step to strengthen SmileDirectClub. We announced a process to implement a comprehensive transaction where the Company’s founders committed to invest significant capital into our business and improve our financial position. As part of that transaction, SmileDirectClub has voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code.
We have decided to file for Chapter 11 because it is a proven legal process that allows companies like SmileDirectClub to operate their business as usual while working to achieve their financial goals. In fact, many notable U.S. corporations have successfully utilized this process and continue to operate thriving businesses—and we expect the same for our business.
The filing is not a liquidation proceeding, but rather a restructuring to improve our short-term and long-term financial health. We expect to right size our balance sheet through Chapter 11 to reflect the underlying strength of our business and our team members, and we are confident that SmileDirectClub will continue to serve our customers as an international oral care leader for our many years to come.
As a customer-driven Company, we are continuously striving to improve the customer experience, which is a major factor in why this restructuring was the best path forward for our business. This process is intended to ensure we are well positioned to continue building upon the success of our SmileMaker Platform and CarePlus premium offerings so we can continue to deliver affordable, accessible, and convenient premium oral care to our loyal customers. Importantly, this process will protect our ability to operate as usual as we work toward these goals, helping you continue on your SmileJourney with us.
Rest assured that SmileDirectClub will continue to operate as normal and serve our customers throughout this process.
We do not expect this announcement to impact our relationship with our customers or the affiliated network of dentists and orthodontists who are treating them through our telehealth platform in any way. SmileDirectClub’s Customer Care and Dental Teams will continue to be available to help over 2 million customers achieve a smile they love.
This announcement has no impact on the reliable and effective products and services we offer. You can continue to place orders and count on our Lifetime Smile Guarantee to protect your smile for life.
For our SmilePay customers, note that you are required to continue making all monthly payments until payment has been made in full per the terms of the SmilePay program.
We also want to be clear that our entities outside the U.S. are not included in the restructuring process, and they will be operating entirely as usual, just like our U.S. operations.
Thank you for trusting us with your smile. We look forward to continuing to care for you for many years to come.