SmileDirectClub to Liquidate After Last-Ditch Sale Effort Fails
- Founder-led rescue bid was a long-shot, lawyer says in hearing
- Company failed to get HPS, other creditors on board with deal
A potential deal to keep SmileDirectClub Inc. afloat has broken down and the once high-flying tooth straightening startup is shutting down.
The publicly traded company, which filed for bankruptcy in late September, had in recent days been negotiating a deal for its founders to provide fresh capital and buy SmileDirectClub out of Chapter 11. But the company failed to get its most important lender and other creditors on board, dooming the effort, attorney Spencer Winters said in bankruptcy court Friday.