Kodak in trouble! But this 133-year-old icon might have a comeback up its sleeve
- Replies 0
Eastman Kodak, the 133-year-old photography company, faced a stark warning this week that its future might be hanging by a thread.
Investors were left reeling as the company admitted it lacked the funding to meet looming debt obligations.
Could one of the most iconic names in photography disappear for good?
Kodak revealed in its latest earnings report that it did not have 'committed financing or available liquidity' to cover roughly $500 million (AUD$763 million) in upcoming debt.
'These conditions raise substantial doubt about the company's ability to continue as a going concern,' the company stated in a filing.
To raise cash, Kodak planned to stop payments for its retirement pension plan while stressing that tariffs would not have 'material impacts' on its operations because many products, including cameras, inks and film, were manufactured in the United States.
'In the second quarter, Kodak continued to make progress against our long-term plan despite the challenges of an uncertain business environment,' CEO Jim Continenza said in the earnings release.
A Kodak spokesperson told CNN that the company was 'confident it will be able to pay off a significant portion of its term loan well before it becomes due, and amend, extend or refinance our remaining debt and/or preferred stock obligations.'
Shares of Eastman Kodak (KODK) plunged more than 25 per cent in midday trading on Tuesday as investors reacted to the news.
The Eastman Kodak Company was incorporated in 1892, though its roots trace back to 1879 when George Eastman patented a plate-coating machine.
In 1888, Eastman sold the first Kodak camera for $25, aiming to make photography accessible to the masses with his slogan: 'You push the button, we do the rest.'
The name 'Kodak' was invented by Eastman out of thin air: 'The letter "K" had been a favourite with me — it seems a strong, incisive sort of letter.'
Kodak enjoyed decades of dominance, controlling 90 per cent of film sales and 85 per cent of camera sales in the United States during the 1970s, and inspiring the hit song Kodachrome in 1973.
However, Kodak stumbled in the digital era despite inventing the first digital camera in 1975, failing to capitalise on its own technology.
The company filed for bankruptcy in 2012 with 100,000 creditors and $6.75 billion in debts.
A brief resurgence came in 2020 when the US government engaged Kodak to produce pharmaceutical ingredients, sending its stock price soaring and triggering 20 trading session circuit breakers.
Despite ongoing financial challenges, Kodak said it intended to expand its pharmaceutical business and continued to produce films and chemicals for industries including film-making, while licensing its brand for consumer products.
Exploring the legacy of Kodak shows how much a single invention can shape our lives and memories.
Photography isn’t just about pictures—it can also enrich daily life and provide unexpected benefits as we age.
For a closer look at how capturing moments can make a real difference, there’s a story that dives into this very topic.
Read more: The surprising power of photography in ageing well
Could the name that once defined photography vanish from history after 133 years of innovation and resilience?
Investors were left reeling as the company admitted it lacked the funding to meet looming debt obligations.
Could one of the most iconic names in photography disappear for good?
Kodak revealed in its latest earnings report that it did not have 'committed financing or available liquidity' to cover roughly $500 million (AUD$763 million) in upcoming debt.
'These conditions raise substantial doubt about the company's ability to continue as a going concern,' the company stated in a filing.
To raise cash, Kodak planned to stop payments for its retirement pension plan while stressing that tariffs would not have 'material impacts' on its operations because many products, including cameras, inks and film, were manufactured in the United States.
Kodak faces $500 million debt crisis. Image source: Pexels/Rasha Saadeh
Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.
Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.
'In the second quarter, Kodak continued to make progress against our long-term plan despite the challenges of an uncertain business environment,' CEO Jim Continenza said in the earnings release.
A Kodak spokesperson told CNN that the company was 'confident it will be able to pay off a significant portion of its term loan well before it becomes due, and amend, extend or refinance our remaining debt and/or preferred stock obligations.'
Shares of Eastman Kodak (KODK) plunged more than 25 per cent in midday trading on Tuesday as investors reacted to the news.
The Eastman Kodak Company was incorporated in 1892, though its roots trace back to 1879 when George Eastman patented a plate-coating machine.
In 1888, Eastman sold the first Kodak camera for $25, aiming to make photography accessible to the masses with his slogan: 'You push the button, we do the rest.'
The name 'Kodak' was invented by Eastman out of thin air: 'The letter "K" had been a favourite with me — it seems a strong, incisive sort of letter.'
Kodak enjoyed decades of dominance, controlling 90 per cent of film sales and 85 per cent of camera sales in the United States during the 1970s, and inspiring the hit song Kodachrome in 1973.
However, Kodak stumbled in the digital era despite inventing the first digital camera in 1975, failing to capitalise on its own technology.
The company filed for bankruptcy in 2012 with 100,000 creditors and $6.75 billion in debts.
A brief resurgence came in 2020 when the US government engaged Kodak to produce pharmaceutical ingredients, sending its stock price soaring and triggering 20 trading session circuit breakers.
Despite ongoing financial challenges, Kodak said it intended to expand its pharmaceutical business and continued to produce films and chemicals for industries including film-making, while licensing its brand for consumer products.
Exploring the legacy of Kodak shows how much a single invention can shape our lives and memories.
Photography isn’t just about pictures—it can also enrich daily life and provide unexpected benefits as we age.
For a closer look at how capturing moments can make a real difference, there’s a story that dives into this very topic.
Read more: The surprising power of photography in ageing well
Could the name that once defined photography vanish from history after 133 years of innovation and resilience?
