Eastman Kodak, the iconic photography company founded in the 19th century, is warning investors that it may not be able to stay in business.
In its latest earnings report on Monday, the company said it lacks “committed financing or available liquidity” to cover roughly $500 million in upcoming debt obligations — a situation that “raises substantial doubt about the company’s ability to continue as a going concern.”
To preserve cash, Kodak plans to halt payments to its retirement pension plan. The company added that tariffs are unlikely to have a “material” effect on its operations because most of its products — including cameras, inks, and film — are made in the United States.
Despite the grim outlook, CEO Jim Continenza insisted Kodak is “making progress” on its long-term strategy. A spokesperson told CNN the company is “confident” it can pay down a significant portion of its debt ahead of schedule and refinance or restructure the rest.
Shares of Kodak (KODK) plunged more than 25% in midday trading Tuesday, USA time.
Founded in 1892, Kodak revolutionized photography with George Eastman’s first camera, marketed under the slogan: “You push the button, we do the rest.” By the 1970s, it controlled 90% of the U.S. film market and 85% of camera sales.
Ironically, the company invented the digital camera in 1975 but failed to adapt to the new technology. In 2012, Kodak filed for bankruptcy, burdened with $6.75 billion in debt and 100,000 creditors.
A brief revival came in 2020 when the U.S. government enlisted Kodak to produce pharmaceutical ingredients, sparking a stock surge. Today, the company still makes film and chemicals — including for Hollywood productions and licenses its name for various consumer products.
But without new financing, one of America’s most storied brands could soon fade to black.
In its latest earnings report on Monday, the company said it lacks “committed financing or available liquidity” to cover roughly $500 million in upcoming debt obligations — a situation that “raises substantial doubt about the company’s ability to continue as a going concern.”
To preserve cash, Kodak plans to halt payments to its retirement pension plan. The company added that tariffs are unlikely to have a “material” effect on its operations because most of its products — including cameras, inks, and film — are made in the United States.
Despite the grim outlook, CEO Jim Continenza insisted Kodak is “making progress” on its long-term strategy. A spokesperson told CNN the company is “confident” it can pay down a significant portion of its debt ahead of schedule and refinance or restructure the rest.
Shares of Kodak (KODK) plunged more than 25% in midday trading Tuesday, USA time.
Founded in 1892, Kodak revolutionized photography with George Eastman’s first camera, marketed under the slogan: “You push the button, we do the rest.” By the 1970s, it controlled 90% of the U.S. film market and 85% of camera sales.
Ironically, the company invented the digital camera in 1975 but failed to adapt to the new technology. In 2012, Kodak filed for bankruptcy, burdened with $6.75 billion in debt and 100,000 creditors.
A brief revival came in 2020 when the U.S. government enlisted Kodak to produce pharmaceutical ingredients, sparking a stock surge. Today, the company still makes film and chemicals — including for Hollywood productions and licenses its name for various consumer products.
But without new financing, one of America’s most storied brands could soon fade to black.
