Kodak has recently issued a grim forecast regarding its prospects as a company.
Dominating the photography sector throughout the 20th century, Kodak was established in 1880 by George Eastman, and by 1888, it introduced its first camera.
By 1996, Kodak’s valuation reportedly soared to an astounding $31 billion.
However, less than twenty years later, the scenario dramatically shifted when Kodak filed for bankruptcy in 2012. The company’s downfall was attributed to its inability to adapt to the technological advancements of the time, despite possessing an employee who had developed a digital camera for Kodak.
In 1975, engineer Steve Sasson presented a digital camera design. Nevertheless, Kodak dismissed his innovation, fearing that digital cameras would harm its profit margins.
As Kodak clung to its film camera legacy, competitors like Canon, Nikon, and Fujifilm transitioned to digital, reaping substantial benefits as a result.
According to Forbes, Canon achieved nearly $2 billion in profits last year, with Fujifilm earning $1.7 billion in profits in 2024.
Although Kodak declared bankruptcy over ten years ago, it has remained operational; however, that could soon change.
The company issued a warning on Monday (August 11) indicating it might be forced to cease operations.
According to CNN, an earnings report revealed Kodak lacks ‘committed financing or available liquidity’ to meet its approximately $500 million in impending debt obligations.
“These conditions raise substantial doubt about the company’s ability to continue as a going concern,” the company cautioned.
To generate funds, reports suggest Kodak intends to halt payments for its retirement pension plan.
The company’s report outlined: “Kodak’s plans to adequately fund its preferred stock and debt obligations when they become due are to use the proceeds from the expected reversion of cash to the Company upon settlement of obligations under the Kodak Retirement Income Plan to reduce the amount of term debt and to amend, extend or refinance its remaining debt and preferred stock obligations.”
A spokesperson for Kodak has addressed the situation, stating to CNN that the company remains ‘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’.