Align Technology puts $31m price tag on forced retail store closures

Align Technology (NSDQ:ALGN) yesterday put a price tag of as much as $31 million on the forced closure of its Invisalign retail outlets after losing arbitration with SmileDirectClub last month.

The March 4 decision required San Jose, Calif.-based Align Technology to close the stores by April 3 and enjoined it from opening new Invisalign stores or providing clear aligner devices in brick-and-mortar stores.

First piloted in 2017, the number of Invisalign stores had risen to 12 by last year. Yesterday the company said it expects the closures to result in first-quarter charges of between $26 million and $31 million, including cash payments of $12 million to $17 million this year.

The charges involve $11 million to $16 million in right-of-use lease assets, $14 million in leasehold improvements and other fixed assets and severance expenses of $1 million, Align said in a regulatory filing.