SmileDirectClub going out of business, attorney says

Driving the news: The company "did commence a wind-down of the business" on Friday, attorney Spencer Winters told Judge Christopher Lopez in a recording of the hearing.

• He said the decision to liquidate came after a "Hail Mary" process of attempting to sell the company as a going concern.
• "By yesterday afternoon, it became clear that it just wasn't working," Winters said Friday, adding that any last-minute deal to save the operation during the liquidation process would be highly improbable.

Zoom in: The company said it will no longer provide customer support or aligners to anyone who ordered them — and that it's canceling its previous "lifetime smile guarantee."

• "We apologize for the inconvenience, but aligner treatment is no longer available through the SmileDirectClub platform," the company says on its website. "If you wish to continue treatment outside of our platform, please consult your treating doctor or your local dentist with any questions around future aligner treatment."
• As for whether customers will qualify for a refund, "there will be more information to come once the bankruptcy process determines next steps and additional measures customers can take," SDC said.
• SDC representatives did not immediately respond to requests seeking additional details.

Catch up quick: When SmileDirectClub started in 2014, it quickly took off as an affordable alternative to rival Align Technology's Invisalign, which is more expensive and typically requires office visits and physical brackets.

• SDC's revenue grew from about $21 million in 2016 to a high of more than $750 million in 2019, but revenue fell by 37% from 2019 to 2022.
• The company's stock never touched its IPO price of $23 after it went public in September 2019. It lost nearly $900 million from 2020 through 2022, according to a court filing.

Editor's note: This story has been updated with a statement from SmileDirectClub's website.