Latest news with #GeorgeEastman
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First Post
5 days ago
- Business
- First Post
Kodak sounds alarm: 133-year-old legacy brand may end operation, debt mounts to over $500 mn
Kodak plans to free up cash by halting payments to its retirement pension plan. The company also stated that it does not anticipate tariffs to have 'material impacts' on its business, as many of its products are manufactured in the United States The shutter click sound of Kodak cameras is likely to stay a memory after the 133-year-old legacy photography company told its investors that it might have to close shop. Earlier this week, Kodak released its earnings report, revealing that it doesn't have 'committed financing or available liquidity' to pay back its $500 million debt. 'These conditions raise substantial doubt about the company's ability to continue as a going concern,' the company said in a filing. STORY CONTINUES BELOW THIS AD Kodak plans to free up cash by halting payments to its retirement pension plan. The company also stated that it does not anticipate tariffs to have 'material impacts' on its business, as many of its products, including cameras, inks, and film, are manufactured in the United States. Kodak CEO Jim Continenza said, 'In the second quarter, Kodak continued to make progress against our long-term plan despite the challenges of an uncertain business environment.' Kodak, officially known as Eastman Kodak Company, was founded by George Eastman in 1888 and revolutionised photography by making it accessible to the general public. With the slogan 'You press the button, we do the rest,' Kodak introduced the first simple camera, changing the way people captured memories. Throughout the 20th century, the company became a dominant force in the film and camera industry, known for innovations like Kodachrome film and the Instamatic camera. Despite its early success, Kodak struggled to adapt to the digital age. Although it was one of the pioneers of digital photography technology, the company failed to capitalise on it commercially. Facing declining film sales and growing competition, Kodak filed for bankruptcy in 2012. Since then, it has shifted focus toward commercial printing, advanced materials, and other imaging-related technologies in an effort to reinvent itself.
India Today
6 days ago
- Business
- India Today
Kodak warns it may shut down after 133 years, faces $500 million debt and uncertain future
Eastman Kodak, the photography pioneer with more than a century of history, has warned it could be forced to close if it cannot find a way to pay off around $500 million in looming debt. In an earnings report released on Monday, the 133-year-old company told investors it lacks 'committed financing or available liquidity' to meet these obligations. In its filing, Kodak said these circumstances 'raise substantial doubt about the company's ability to continue as a going concern.' Shares in Kodak fell by more than 25 per cent during midday trading on Tuesday following the raise cash, the company plans to stop making payments to its retirement pension plan, according to a report by CNN. It also said it does not expect tariffs to have a significant impact, as many of its products, including cameras, inks, and film, are made in the United reportedly told CNN that they are 'confident' about paying off a significant part of the term loan before it is due. They added that the company would seek to amend, extend, or refinance the rest of its debt and preferred stock obligations. According to the spokesperson, the 'going concern' language in the filing was a required disclosure. Chief executive Jim Continenza said the business was still making progress on its long-term strategy despite 'the challenges of an uncertain business environment.'Founded in 1892 and tracing its roots back to 1879, Kodak revolutionised photography when George Eastman sold the first Kodak camera in 1888 for $25. The camera made photography accessible to the public, leading to the famous slogan: 'You push the button, we do the rest.'By the 1970s, Kodak was a dominant force, responsible for 90 per cent of film and 85 per cent of camera sales in the United States, according to The Economist. Musician Paul Simon's 1973 hit 'Kodachrome' paid tribute to its iconic a twist of fate, the same company that introduced the first digital camera in 1975 struggled to adapt to the digital revolution. By 2012, Kodak had filed for bankruptcy, with debts of $6.75 billion and more than 100,000 then, Kodak has shifted towards industrial printing and brand licensing. It has also ventured into consumer gadgets, such as themed mini photo printers. In 2020, it briefly enjoyed a surge in share price after being awarded, and later facing scrutiny over, a $765 million US government loan to produce pharmaceutical company continues to make films and chemicals for commercial use, including the movie industry, and still licenses its brand. But with the debt clock ticking, its future is clouded by uncertainty. - EndsMust Watch
The Sun
6 days ago
- Business
- The Sun
Fears iconic tech brand is shutting down after 133 YEARS as bosses reveal $500 million debt
AN ICONIC 133 year-old tech brand has warned of "substantial doubt" over its future as bosses grapple with massive debts. Kodak pioneered photography for decades but has struggled to keep up with the digital era. 2 2 The ailing US firm has almost $500 million in upcoming debt obligations and no "committed financing" to pay it off currently, according to a regulatory filing. "Kodak has debt coming due within 12 months and does not have committed financing or available liquidity to meet such debt obligations if they were to become due in accordance with their current terms," the filing reads. "These conditions raise substantial doubt about Kodak's ability to continue as a going concern." Kodak was founded by George Eastman in 1880 under the name of Eastman Kodak Co. His goal was to "make the camera as convenient as the pencil". The company is credited with making cameras popular to the masses, especially with disposable cameras long before smartphones. Kodak also sells other products such as batteries and even TVs in more recent years. People have shared their dismay at the prospect for Kodak shutting up shop on social media. "I wonder about Kodak from time to time," one person wrote on X. "Sad to see what once was an indispensable name worldwide on the verge of potential collapse." Another commented: "I thought they went out of business years ago, back when digital cameras became a big thing." However, bosses have said that the "going concern" language in the filing is essentially a required disclosure because its debt comes due within 12 months of the filing. They hope to find the cash needed by ceasing payments for its retirement pension plan. "Kodak is 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," a company rep said. It's not the first time Kodak has been in financial trouble. Back in 2012, the firm filed for bankruptcy protection.
Time of India
6 days ago
- Business
- Time of India
Kodak refund plan explained: Photography giant faces survival threat, plans pension halt amid massive debt repayment; details here
Eastman Kodak, the 133-year-old photography company, has warned investors it may not survive much longer as a standalone business. In its latest earnings report, the company said it lacks 'committed financing or available liquidity' to cover roughly $500 million in debt due soon. 'These conditions raise substantial doubt about the company's ability to continue as a going concern,' Kodak stated in a filing. The company plans to raise cash by halting payments to its retirement pension plan. Despite the financial strain, Kodak said tariffs are unlikely to have a 'material impact' since it manufactures most of its products — including cameras, inks and film — in the United States. Debt pressure and company response Kodak CEO Jim Continenza said in the earnings release that the company 'continued to make progress against our long-term plan despite the challenges of an uncertain business environment.' A spokesperson told CNN that Kodak remains 'confident' it can pay a significant portion of its term loan before it is due and seek to amend, extend, or refinance its remaining debt and preferred stock obligations. Shares of Eastman Kodak (KODK) dropped more than 25% in midday trading Tuesday following the announcement. Everyone start buying film from kodak NOW!!!! And give it to me A century of success and innovation Kodak was incorporated in 1892 but traces its origins to 1879, when founder George Eastman patented a plate-coating machine. In 1888, Eastman launched the first Kodak camera for $25, making photography accessible to the general public. Its slogan, 'You push the button, we do the rest,' reflected its aim to simplify the process. At its peak in the 1970s, Kodak controlled 90% of the US film market and 85% of camera sales. It was even celebrated in popular culture, such as in Paul Simon's 1973 hit 'Kodachrome.' The company invented the first digital camera in 1975 but failed to adapt to the digital shift. Decline, bankruptcy, and recent shifts In 2012, Kodak filed for Chapter 11 bankruptcy with $6.75 billion in debt and 100,000 creditors. In 2020, it briefly revived interest when the US government tapped it to produce pharmaceutical ingredients, causing a sharp but temporary surge in its stock price. Today, Kodak continues to produce film and chemicals for industries such as filmmaking and licenses its brand for consumer products. It has also expressed plans to expand its pharmaceutical business despite ongoing financial challenges.
Economic Times
6 days ago
- Business
- Economic Times
First the Japanese, then digital and now debt: The 130-year-old Kodak, which survived one bankruptcy, may have just 12 months to survive
Synopsis Eastman Kodak, the 130-year-old photography giant, is facing financial uncertainty, raising concerns about its ability to continue operations due to upcoming debt obligations. The company's shares plummeted after it revealed a lack of sufficient financing to cover its debts. Despite efforts to restructure and focus on commercial printing and pharmaceutical manufacturing, Kodak is still grappling with financial challenges. AP Founded by George Eastman in 1880, Kodak revolutionized photography in the early 20th century with products like the Brownie and Instamatic cameras and its signature yellow-and-red film boxes. The 130-year-old Eastman Kodak Co. has warned there is 'substantial doubt' about its ability to continue operating, citing potential difficulties in meeting upcoming debt obligations. Shares of the iconic photography company tumbled more than 13% in early trading on Tuesday after Kodak disclosed in a regulatory filing that it has debt maturing within the next 12 months but lacks committed financing or sufficient liquidity to cover it under current terms. As of June 30, Kodak reported $155 million in cash and cash equivalents, with $70 million held in the U.S. Last year, the company announced plans to terminate its retirement income plan to reduce debt. Chief Financial Officer David Bullwinkle said Monday that Kodak expects to determine by Friday how it will fulfill obligations to all pension plan participants, with the reversion process targeted for completion by December. Founded by George Eastman in 1880, Kodak revolutionized photography in the early 20th century with products like the Brownie and Instamatic cameras and its signature yellow-and-red film boxes. However, it was eventually undone by fierce Japanese competition and its failure to adapt quickly to the digital era. Kodak filed for bankruptcy protection in 2012, burdened by mounting debt and the rise of digital photography. The company shed many businesses and patents, shuttered its camera manufacturing operations, and reemerged a year later as a smaller firm focused on commercial and packaging printing. Today, Kodak is nearing completion of a new manufacturing plant for regulated pharmaceutical products, expanding on its existing production of unregulated key starting materials. Operations at the upgraded facility are slated to begin later this year.
