Rochester, NY – Eastman Kodak Co., the iconic American company that brought photography to the masses over a century ago, has issued a stark warning that it may not be able to continue operating, citing overwhelming debt and a dire financial outlook. The news, revealed in recent government filings, sent the company’s shares plummeting in early trading on Tuesday.
The bleak assessment of its future came after Kodak reported a second-quarter loss, deepening concerns about its viability.
“Substantial Doubt” Over Company’s Future
In filings with the U.S. Securities and Exchange Commission on Monday, the Rochester-based company stated there is “substantial doubt” about its ability to remain a going concern. The primary cause for concern is a debt burden of more than $470 million that is coming due within the next twelve months.
Kodak acknowledged the severity of its position, stating in the filing that it “does not have committed financing or available liquidity to meet such debt obligations if they were to become due.” In an attempt to stay afloat, the company has resorted to measures such as slashing its pension plan.
A Storied History Faces a Modern Struggle
The warning marks a potential final chapter for a brand that has been a cornerstone of American industry for over 130 years. Founded in the late 19th century, Kodak’s introduction of the #1 camera in 1888 is credited with making photography accessible to the everyday person and revolutionizing the craft.
Despite its historic dominance in film photography, the company famously struggled to adapt to the digital imaging revolution. This led to a previous bankruptcy filing in 2012, after which Kodak attempted to reinvent itself by pivoting into specialty chemicals and pharmaceuticals. However, its current financial distress indicates that this strategic shift has not been enough to secure its long-term future.
