Kodak Warns of Financial Crisis Amidst Debt Concerns

New York, NY — Eastman Kodak, the 133-year-old photography company, issued a warning to investors on Monday, stating it may struggle to survive due to financial difficulties. In its recent earnings report, Kodak revealed it lacks ‘committed financing or available liquidity’ to meet nearly $500 million in upcoming debt obligations.

These alarming conditions raise ‘substantial doubt about the company’s ability to continue as a going concern,’ Kodak mentioned in a regulatory filing. In an effort to manage its finances, the company plans to halt payments toward its retirement pension plan. Kodak also indicated that it does not foresee tariffs having significant effects on its operations, as most of its products, including cameras, inks, and film, are manufactured in the United States.

‘In the second quarter, Kodak continued to make progress against our long-term plan despite the challenges of an uncertain business environment,’ said Kodak CEO Jim Continenza in the earnings release. However, shares fell more than 7% in premarket trading on Tuesday.

The origin of Eastman Kodak dates back to 1879 when George Eastman obtained his first patent for a plate-coating machine. In 1888, he sold the first Kodak camera for $25, designed to make photography accessible to the public. Eastman famously coined the slogan: ‘You push the button, we do the rest.’

During its peak in the 1970s, Kodak accounted for 90% of film sales and 85% of camera sales in the United States. Despite its success, Kodak did not adapt well to the digital revolution, leading to a bankruptcy filing in 2012 with debts of $6.75 billion and 100,000 creditors.

In recent years, Kodak has attempted to pivot its business model, including a brief government contract to produce pharmaceutical ingredients. Despite encountering significant financial losses, the company maintains that it continues to manufacture films and chemicals for the movie industry and licenses its brand for consumer products.