SmileDirectClub Inc. SDC, a dental aligner manufacturer, has filed for bankruptcy conscionable a fewer years aft its singular $1.35 cardinal IPO.
What Happened: The Nashville-based institution made its Chapter 11 declaration successful Texas this past week. The move volition let it to prolong operations portion formulating a strategy to settee its debts.
As a portion of the revival plan, the company's founders are acceptable to pump a minimum of $20 cardinal backmost into the business, according to Bloomberg.
SmileDirectClub introduced integrative aligners, presenting a much affordable alternate to age-old braces, and took a direct-to-consumer selling approach.
Also Read: SmileDirectClub's Return On Capital Employed Insights
The company's valuation soared to $8.9 cardinal successful its 2019 IPO, elevating its founders to billionaire status.
However, the post-IPO signifier was riddled with obstacles. The institution grappled with decreasing revenues and remained unprofitable. A patent tussle with a competing steadfast further strained its resources.
The onset of the pandemic dealt an further blow, compelling the institution to slash its income and promotional activities.
While SmileDirectClub pioneered the direct-to-consumer dental aligner market, it faces stiff contention from brands similar Invisalign, which is owned by Align Technology, Inc ALGN; Candid; Byte, which is owned by Dentsply Sirona Inc XRAY; NewSmile; and ALIGERNCO. These competitors person been vying for a stock of the lucrative dental aligner market, further intensifying the challenges for SmileDirectClub.
Align closed Friday's trading league astatine $305.32. Dentsply Sirona closed astatine $34.16. SmileDirectClub closed astatine $0.42 pursuing the bankruptcy announcement.
Now Read: SmileDirectClub Reports Second Quarter 2023 Financial Results
This contented was partially produced with the assistance of AI tools and was reviewed and published by Benzinga editors.