(qlmbusinessnews.com Mon, 11th Dec, 2023) London, UK —
“Clear Aligner Giant Smile Direct Club Shuts Down Amidst Financial Woes”
Smile Direct Club, a prominent clear aligners provider, has officially closed its doors, marking the end of its operations months after filing for bankruptcy in the United States. The closure has left many customers in the UK and other regions bewildered and stranded, especially those currently undergoing treatment with the company.
Recognized for its remote distribution of clear aligners, Smile Direct Club cited the “incredibly difficult decision” to wind down operations, highlighting the impact of substantial debt. The US-based orthodontics company, founded in 2014, positioned itself as a disruptor to the traditional “bricks-and-mortar” dental industry.
Customers were drawn to Smile Direct Club due to its lower price point of approximately £1,800 and the convenience of taking moulds for aligners at home. Unlike traditional dentistry, where braces or aligners are fitted during in-person consultations by dentists or orthodontists, Smile Direct Club offered online check-ins with registered dentists, and the treatment typically spanned four to six months.
In a statement on its website, the company claimed to have “improved more than two million smiles and lives.” However, customers worldwide, including the US and the UK, are now facing confusion as the company's customer support line is no longer available. Despite ongoing treatments requiring check-ins or adjustments, the company advises customers to contact local dentists for continuation.
Adding to customer frustration, Smile Direct Club announced that the previously offered “lifetime smile guarantee” is no longer valid. Customers with existing payment plans are expected to continue making payments, and information on refunds will be provided as the bankruptcy process unfolds.
The closure has prompted disappointment and anger among customers, with some expressing concerns about unfinished treatments and recent payments. The company's demise has also raised questions about the availability of refunds, leaving customers uncertain about the future of their ongoing dental care.
Consumer law expert Lisa Webb from Which? emphasized that customers left in limbo may find it challenging to obtain refunds, as liquidators will handle these, with customers likely at the end of a long list of creditors. She recommended that UK customers waiting for products may explore potential refunds through Section 75 under the Consumer Credit Act, especially if they paid via credit card.
Smile Direct Club had filed for Chapter 11 bankruptcy in the US in September, aiming to reorganize debts or sell parts of the business. Unfortunately, a last-ditch rescue attempt failed, revealing the company's struggle with financial challenges and debts amounting to nearly $900 million at the time of filing.
While the company had once been valued at $8.9 billion, it faced various challenges, including patent clashes and concerns raised by dentists about aligner fit issues and alleged permanent nerve damage and tooth loss. Despite these challenges, Smile Direct Club maintained that licensed professionals reviewed customers' treatments, and potential risks were duly disclosed.
This News Story is brought to you by QLM Business News, your Digital Media Channel
Visit QLM businessnews.com
For more business news stories also follow us on Facebook, X and Youtube.
To Help qlm business news bring you more new stories like this, please like, share and subscribe.
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.
