Kathrine Frich
CFO David Bullwinkle promised clarity on obligations by August 15.
CFO David Bullwinkle promised clarity on obligations by August 15.
A Photography Icon on the Brink
Kodak, the 133-year-old pioneer in photography, has warned investors it may not survive much longer.
The American company admits it has neither committed financing nor enough liquidity to meet its $500 million debt obligations.
Financial Crisis Deepens
As of June 30, Kodak held just $155 million in cash, down $46 million from the end of 2024.
This shortfall leaves the firm facing major repayment challenges within the next 12 months.
Ending Pension Plans to Cut Costs
To ease its debt burden, Kodak announced in late 2024 it would end its long-standing pension program for former employees.
The reallocation of these funds is expected to be complete by December 2025.
Leadership Remains Cautiously Optimistic
CEO Jim Continenza said the company is still making progress on its long-term plan, despite the uncertain business environment.
CFO David Bullwinkle promised clarity on obligations by August 15.
Markets React Harshly
Following Kodak’s downbeat financial outlook, its shares fell 20% on Wall Street.
The news shocked investors, though Kodak claims tariffs imposed by Donald Trump have not significantly impacted its business.
Once an Industry Titan
In the 1970s, Kodak produced 90% of US film and 85% of its cameras.
The brand was once nearly synonymous with photography, dominating the global market for decades.
How Decline Set In
The company began losing ground in the 1980s due to Japanese competition from Fujifilm, Sony, and Canon.
The shift to digital photography further eroded its dominance, a transition Kodak failed to lead.
Past Bankruptcy and Recovery
Kodak declared bankruptcy in 2012 and emerged in 2013 after severe restructuring.
That recovery came with great sacrifices, raising doubts about whether the company can repeat the feat this time.
Manufacturing Still Rooted in the US
Despite global shifts, Kodak still produces many of its cameras, inks, and films in the United States.
This has cushioned it from recent trade tariffs, but not from deeper structural issues.
