The famous 19th-century photography company Eastman Kodak is cautioning investors that it might not be able to survive. The company said in its most recent earnings report on Monday that it does not have “committed financing or available liquidity” to pay off approximately $500 million in future debt obligations, which “raises substantial doubt about the company’s ability to continue as a going concern.”
Kodak intends to stop making payments to its retirement pension plan in order to save money. The company also stated that since the majority of its products, such as cameras, inks, and film, are produced in the US, tariffs are not expected to have a “material” impact on its business operations.
Jim Continenza, the CEO, maintained that Kodak is “making progress” on its long-term strategy despite the bleak outlook.
The company is “confident” that it can pay off a sizable amount of its debt ahead of schedule and refinance or restructure the remaining amount, a spokesperson told CNN.
Tuesday, USA time, saw a more than 25% decline in Kodak (KODK) shares at midday. George Eastman’s first camera, Kodak, which was founded in 1892, marketed with the tagline, “You push the button, we do the rest,” revolutionized photography.
It accounted for 85% of camera sales and 90% of the film market in the United States by the 1970s.
It is ironic that despite creating the digital camera in 1975, the company was unable to adjust to the new technology. With 100,000 creditors and $6.75 billion in debt, Kodak declared bankruptcy in 2012.
In 2020, Kodak experienced a brief resurgence when the U.S. government hired the company to manufacture pharmaceutical ingredients, which caused a spike in stock prices.
The business still produces chemicals and film today, including for Hollywood productions, and it also licenses its name to a number of consumer goods.
However, one of America’s most iconic brands may soon go bankrupt if fresh funding isn’t obtained.
