A company now lets customers down after a painful bankruptcy, trapping many in an unfortunate money pit.
SmileDirectClub expected to survive Chapter 11 bankruptcy with financial support from its founders.
“[The Company] will seek to recapitalize through a transaction where the company’s founders have committed to invest at least $20 million to bolster the company’s balance sheet and to protect its near- and long-term financial health,” the company shared in a press release.
That deal would have given the company access to up to $60 million as long as the company met certain milestones, reports TheStreet.
At the time that deal was shared publicly, the company assured its customers — all of whom are either starting or in the process of using SmileDirectClub’s aligners to straighten their teeth — that orders would continue to be filled.
However, the company suddenly shut down as of December 8th.
This sudden closure leaves the company’s customers in a difficult position as many of them are in the middle of a multi-year medical process.
The company was very clear, however, on its website that it was closing and no effort was being made to sell the brand to another company which could continue servicing its customers.
“SmileDirectClub has made the incredibly difficult decision to wind down its global operations, effective immediately.
For new customers interested in SmileDirectClub services, thank you for your interest, but aligner treatment is no longer available through our telehealth platform.
For existing customers, we apologize for the inconvenience, but customer care support is no longer available,” the company shared on its website.
“Unfortunately, aligner treatment is no longer available through the SmileDirectClub platform.
All orders that have not yet shipped have been canceled at this time, and you will not receive your aligners,” the company added.
Other Economy News Today
Massive layoffs at TD Bank are now underway as the company aims to cut more than 3,000 jobs, a 3% reduction of its workforce.
The 3% reduction will encompass “all business lines” and will be achieved “through attrition and by redeploying talent to open positions wherever possible,” bank representatives said during the third quarter’s earnings call.
TD recorded $363 million in restructuring charges in the fourth quarter tied to employee severance and other personnel-related costs, real estate optimization and asset impairments, the bank said, adding that similar charges are expected in the first half of 2024.
The bank is aiming for $600 million in savings, including $400 million in fiscal 2024, it said.
“While we are focused on expenses, we are pursuing meaningful revenue opportunities across our businesses,” CFO Kelvin Tran said.
“We outlined our strategies to accelerate growth in our Canadian retail businesses at our recent Investor Day and the acquisition of TD Cowen provides additional capabilities for TD to grow its investment bank.”
TD Bank is still under federal investigation by the Justice Department regarding compliance and anti-money laundering matters, originally disclosed in August, Bloomberg reported Thursday.
While TD said it doesn’t expect the investigation to have a material impact on financial results, “there is a possibility that the ultimate resolution of legal or regulatory actions may be material to the bank’s consolidated results of operations for any particular reporting period,” the bank said.
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