Dental leaders have been forced to make some difficult decisions in the wake of a tough economic environment, staffing challenges and other obstacles facing the industry.
Here are seven bankruptcies, layoffs and closures affecting the dental industry this year:
Bankruptcies
1. Dental laser manufacturer Biolase initiated Chapter 11 bankruptcy proceedings earlier this month and entered a $14 million purchase agreement to sell nearly all of its assets to Sonendo.
The bankruptcy filing comes after the company saw dips in revenue from last year. The company was also delisted from Nasdaq in June for not meeting certain requirements, including failure to satisfy the $1.00 minimum bid price listing requirement and failure to comply with the stock exchange's $2,500,000 minimum stockholders' equity requirement.
2. Memphis, Tenn.-based Contagious Smiles, owned by Larry Anthony, DDS, closed in July due to "unforeseen financial difficulties," according to a statement sent to WREG Memphis. The statement said Dr. Anthony would be filing for bankruptcy to address the financial challenges and that the practice plans to address refunds and outstanding balances.
Layoffs
1. Henry Schein announced layoffs earlier this year as it continues to recover from a cyberattack that took place in October 2023. The company saw continued reduced sales growth as a result of the cyber incident.
The company said in its second quarter 2024 financial report that its restructuring plan aims to right-size operations and save the company between $75 million and $100 million, and help the company integrate recent acquisitions. These acquisitions include several dental businesses, according to the company's Form 10-Q filed Aug. 6. The company expects to record restructuring charges later this year and in 2025.
2. Dentsply Sirona announced a second round of layoffs in July as it aims to regain its footing after an internal audit into possible securities fraud that began March 2022.
The company's investigation looked into financial reporting matters submitted by employees of the company. The investigation, which concluded in November 2022, determined that certain members of senior management violated provisions of the company’s code of ethics and business conduct.
In February 2023, Dentsply Sirona announced a restructuring plan aimed at improving operational performance and driving shareholder value creation. The dental supplier planned to reduce its global workforce by approximately 8-10% as part of the plan, with the goal of bringing in at least $200 million in annual cost savings over the following 18 months.
The second round of layoffs included a 2-4% reduction of the company's global workforce with the intention of bringing in between $80 million and $100 million in annual cost savings. The company plans to mostly complete this restructuring plan by the end of 2025.
Closures
1. Pacific Northwest Implant Studio and General Dentistry in Eugene, Ore., shut down unexpectedly in January. The landlord of the building posted a notice citing failure to pay as the reason for the abrupt closing.
2. Marko Kamel, DDS, said he was forced to close his practice, Woodbury (Minn.) Dental Arts, in March because his license was suspended and he did not have the money to continue running the practice.
3. Rochester, N.Y.-based Mosaic Health announced it would close two of its dental clinics in June after experiencing changes in funding and workforce shortages.
The center saw a $4 million decrease in grant revenue, about 30% of its annual operating budget, which created a need for reduced expenses.