SmileDirectClub to Liquidate After Last-Ditch Sale Effort Fails

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.

SmileDirectClub sought bidders for the enterprise over the past two months and found some interest, but all suitors ...