A POPULAR dental company based in the United States has filed for bankruptcy after noting almost $1billion in debt.

SmileDirectClub, a well-known remote orthodontic therapy company, announced it would file for Chapter 11 on September 29 but has until November 23 to secure their financials, or they will cease operations entirely.

The company gained notice for its at-home clear aligner to assist customers in obtaining a straighter smile but suffered several lawsuits and economic struggles in recent years, the Dental Tribune reported.

It will be allowed to control its business operations for the interim until the November deadline to reorganize its capital under the supervision of the US Bankruptcy Court for the Southern District of Texas.

Since its founding in 2014, per the company website, SmileDirectClub accrued a reported $900million in debt with just $5million in liquidity.

At the first bankruptcy court hearing, a loan of an additional $20million from SmileDirectClub’s founders was approved.

They also added that an additional $60million could be put into the company’s operations depending on the results of the court proceedings, per a press release on the SmileDirectClub site.

The Chapter 11 filing could provide an opportunity for SmileDirectClub to obtain debt relief from interested buyers who, in turn, get to own a considerable share of the company.

Although time is running out as Troy Crawford, the Chief Financial Officer for SmileDirectClub, explained that the company would cease operations and liquidate its assets if no buyer comes forward, per Bloomberg.

SmileDirectClub’s downfall came seemingly from struggles amid the COVID-19 pandemic, but it also suffered a cyber attack and employee shooting at its Nashville, Tennessee headquarters.

Three workers were injured in the 2021 incident, and the gunman was fatally killed by police who were called to the scene, per local outlet WTVF.

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It reportedly hasn’t been profitable since September 2019 and had a drastic decline in clear teeth aligner orders in 2020.

While 122,751 were sold in the first quarter of the year, only 57,136 were bought by customers in the second.

Those numbers climbed and fluctuated again throughout 2021 until 2023, but company shares dropped from $23 to $9.

SmileDirectClub continued, however, changing its business model in 2022 to offer a premium service, and the brand seeks to disrupt the orthodontics space with its restructuring from the Chapter 11 filing, per the Dental Tribune.

The “comprehensive recapitalization transaction” will allegedly make the company a leader in the dental industry “many years to come,” according to their statement on the bankruptcy announcement.

“During this restructuring process, SmileDirectClub intends to continue to provide affordable and accessible oral care to its customers without disruption.”

Despite the message of hope from SmileDirectClub, some of its 2million or more customers have been left not smiling after their experiences and the bankruptcy announcement.

“I was never a fan of smile direct club and thought the idea was dumb,” one fan fumed in a post on X, formerly Twitter.

“So glad to hear that they are filing for bankruptcy.”

“Not smiling,” another fan noted of the announcement.

It was also reported that the company sought the quick approval of the Texas bankruptcy court for the sale of a $5.25 million corporate private jet, per Law 360.

The U.S. Sun has contacted SmileDirectClub for further comment on its Chapter 11 filing.