Eastman Kodak, a 133-year-old pioneer in photography, raised alarms about its ongoing viability, citing "substantial doubt" in meeting future financial obligations due to limited resources, as stated in an August 11 regulatory filing with CBS News. This "going concern" warning indicates a significant risk that the company may not sustain operations.
The company's shares dropped sharply by $1.73, a 26% decline, reaching $5.05 during Tuesday morning trading. A spokesperson for Kodak referred to the regulatory filing when contacted by CBS News for further comment.
Kodak's financial difficulties stem from nearly $500 million in short-term debt and over $200 million in pension liabilities. In 2024, the company announced plans to terminate its pension plan to alleviate debt, according to The Wall Street Journal.
"We should have a clear understanding by Aug. 15 of how we will satisfy our obligations to all plan participants," said Chief Financial Officer David Bullwinkle in a statement regarding the pension plan.
Kodak's legacy of innovation overshadowed by modern struggles.
Founded in 1892 by George Eastman in Rochester, New York, Eastman Kodak revolutionized photography with its Brownie and Instamatic cameras, making it a household name. Its red-and-yellow film boxes became a staple in retail. Eastman's vision was "to make the camera as convenient as the pencil," as noted on the Kodak website.
However, competition from Japanese firms like Fujifilm and the rise of digital photography in the 1990s challenged Kodak, culminating in a 2012 bankruptcy filing. The company sold off numerous assets and patents and closed its camera manufacturing division, exiting bankruptcy oversight in 2013 with a focus on commercial and packaging printing.
Kodak is now close to completing a facility to produce regulated pharmaceutical products, building on its existing production of unregulated pharmaceutical materials. The new plant is expected to begin operations later this year.
