SmileDirectClub, Inc.: going-concern / distress — SmileDirectClub files Chapter 11 bankruptcy; founders commit $20M+ for recapitalization

SmileDirectClub, Inc.

Company and certain subsidiaries filed Chapter 11 in SD Texas on Sept 29, 2023; operating as debtors-in-possession.
Founders committed at least $20M, up to $60M additional capital; DIP financing expected to result in significant/total equity loss.
Retention bonuses approved: CFO Troy Crawford ($300K) and CLO Susan Greenspon Rammelt ($350K) to stay through restructuring.
Core business guidance: revenue $400-450M flat through 2025; gross margin expands from 74% to 78% by 2025.
Growth initiatives (SmileMaker, CarePlus) could add ~$400M revenue and ~$250M EBITDA through 2025, but projections are aspirational.

Key facts

Extracted from this filing and checked against the source text.

Distress & Bankruptcy SEC 8-K Item 1.03 confidence 0.9

SmileDirectClub, Inc. entered chapter 11 in U.S. Bankruptcy Court for the Southern District of Texas, Houston Division (petition 2023-09-29).

Proceeding: chapter 11
Court: U.S. Bankruptcy Court for the Southern District of Texas, Houston Division
Petition: 2023-09-29

Exact text from the filing

On September 29, 2023 (the “Petition Date”), SmileDirectClub, Inc. (the “Company” or “SDC”) and certain of its direct and indirect subsidiaries (collectively, the “Company Parties”) filed voluntary petitions (the “Chapter 11 Cases”) under Chapter 11 of the U.S. Bankruptcy Code (the “Bankruptcy Code”) in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division (the “Bankruptcy Court”).

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Source: SEC EDGAR

accession 0001775625-23-000109

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