Eastman Kodak, a photography pioneer with a history spanning 133 years, is facing significant financial distress, indicating it may not survive in the near future. In its recent earnings report, the company revealed a lack of “committed financing or available liquidity” to meet approximately AUD$763 million in upcoming debt obligations. Kodak acknowledged that these challenges raise considerable doubts about its viability as a continuing enterprise.
To alleviate its financial woes, Kodak is looking to generate cash by halting payments on its retirement pension plan; however, it does not foresee tariffs impacting its business notably, as it produces many of its offerings, including cameras and film, domestically in the United States. Despite these hurdles, CEO Jim Continenza expressed optimism about progress towards the company’s long-term objectives, even amidst an unpredictable business environment. A Kodak spokesperson assured that the company believes it can repay a substantial portion of its term loan before it is due and plans to amend, extend, or refinance its remaining debts.
Shares of Kodak have dropped over 25% recently, reflecting investor anxiety about its future. Founded in 1892, Kodak’s roots can be traced back to 1879 when inventor George Eastman introduced a plate-coating machine. The world first encountered the Kodak camera in 1888, which revolutionised photography by making it accessible to the general public with Eastman’s slogan, “You push the button, we do the rest.”
The company dominated the photography market for much of the 20th century, holding a staggering market share in film and camera sales in America during the 1970s. However, its pioneering work in developing the first digital camera in 1975 ultimately led to its downfall, as Kodak struggled to embrace the digital transition. In 2012, the company filed for bankruptcy with debts reaching USD$6.75 billion and approximately 100,000 creditors.
In 2020, Kodak experienced a brief surge in fortunes after being selected by the US government to pivot into pharmaceutical ingredient production, causing its stock to skyrocket. Nevertheless, the company continues to focus on diversifying its business by producing films and chemicals for various markets, including film production, while it also licenses its brand for consumer products. Despite its challenges, Kodak is attempting to leverage its existing strengths in a bid for recovery.