When Corporate Welfare Fails, Who Pays The Bill?
Image Credit: Smile Direct Club / Facebook
The Tennessee Conservative [By Rebecca Scott] –
SmileDirectClub is shutting down, effective immediately. This Nashville based company provided tele-health dental aligners to its customers, but now patrons are left with incomplete treatment and unkept promises as the company has filed for bankruptcy.
To add insult to injury, SmileDirectClub has been the recipient of approximately $10.4 million dollars in FastTrack incentive grants from the Tennessee Department of Economic and Community Development.
In other words, taxpayer dollars in the millions have been given to a company that now expects its customers to finish out their payment plans with no services rendered from this point forward.
Furthermore, the company’s “Lifetime Smile Guarantee” has been canceled, customers who are mid-treatment will not receive the remainder of their aligners, no customer service is available, and the SmileDirectClub website offers no option for refunds.
Currently the website states that, “There will be more information to come once the bankruptcy process determines next steps and additional measures customers can take.”
The Tennessean reported that “SmileDirectClub is the 21st largest employer in Nashville, according to the Nashville Area Chamber of Commerce.”
As the state allots taxpayer dollars to assist large companies, where is the recourse when the funds are utilized by a company that shutters its doors and leaves its customers out to dry?
While the FastTrack grant program is designed to incentivize companies to locate their businesses in the Volunteer State, what does it benefit Tennessee residents when their tax dollars are thrown at large companies with seemingly no obligation to repay?
As Nashville says goodbye to SmileDirectClub, taxpayers also say goodbye to the $10.4 million of their hard-earned money that was invested in a now-failed corporation.
Rebecca Scott is a Tennessee resident and reporter for The Tennessee Conservative. You can reach Rebecca at Rebecca@tennesseeconservativenews.com.
If this was such a great entity, then there should have been no issue garnering private equity. Too often government sponsoring business ends up just like this. Solyndra for example
I believe a “Close scrutiny” reading of the Constitution would reveal a lack of “Enumerated Power” for Government to “INVEST” money in a “FOR PROFIT” company.
Biden has thrown away “BILLIONS” investing in “FOR PROFIT” Green Projects which had failed.
But when Stupid people play the political game of voting for/against the other party rather than for themselves, can’t really blame Government.
Yes
We can blame govt, it’s not their job.
All govts play this game and there is never any accountability.