SmileDirectClub Files for Bankruptcy, Capping Years of Losses

Dental aligner company SmileDirectClub Inc. filed for bankruptcy four years after raising $1.35 billion in an initial public offering.

The Chapter 11 filing in Texas on Friday allows the company to continue operating while it works out a play to repay creditors. The company’s founders will invest at least $20 million into the company as part of its reorganization, according to a statement.

Nashville, Tennessee-based SmileDirectClub listed $499 million of assets and more than $1 billion of liabilities in its bankruptcy petition.

The company makes plastic aligners that can straighten teeth at a fraction of the price of ...