Eastman Kodak Company was founded in 1892 and is a name synonymous with photography. If you grew up in the 70s and 80s like I did, “buy Kodak” is the generic term used when buying a roll of film at a photo shop. The shift in the photography landscape from analog to digital has taken a toll on Kodak’s business. In its latest quarterly financial report, Kodak now says it may not be able to continue in business within a year.
Within a year, there were debts that needed to be paid but the company did not have the financing or liquidity to meet those obligations, raising serious doubts about Kodak’s ability to continue.
This year alone, the company has posted a $46 million loss with $500 million in debt but only $150 million in cash on hand. Although Kodak’s financial position is shaky, they are still confident that they can pay off most of their loans ahead of schedule, and amend, extend or refinance the remaining debt through stock obligations.
If the company has to file for bankruptcy, it will be the second time after the first time in 2012. The company emerged from bankruptcy in 2013 after selling off several businesses, restructuring and selling the license to use the Kodak name to another company.
If Kodak “rolls film” forever, it will leave a legacy after 133 years of operation. Among Kodak’s inventions are film that replaced plates for taking pictures, film in the form of a roll that allows pictures to be taken continuously before being replaced, creating film to produce motion pictures and the first digital camera in 1975.