Eastman Kodak, the 133-year-old photography pioneer, has warned that it may not be able to continue operations due to mounting financial pressures.
In its latest earnings report released on Monday, the company admitted it lacks “committed financing or available liquidity” to cover around $500 million in upcoming debt repayments.
The statement said this shortfall “raises substantial doubt about the company’s ability to continue as a going concern.”
To conserve cash, Kodak plans to suspend payments to its retirement pension plan, while noting that tariffs would have minimal effect on its business since most of its products are made in the United States.
Read also: Nine Android Phones Under ₦300,000 With Quality Cameras
Popular Actor Accidentally Kills Woman On Movie Set
The Journey of an Osun born DJ, Olayinka Olawale “DJ Nifty”
Despite the warning, Chief Executive Officer Jim Continenza maintained that the company is “making progress” on its long-term strategy.
A spokesperson told CNN that Kodak remained “confident” it could pay off a significant portion of its debt ahead of schedule and either refinance or restructure the remainder.
Shares of Kodak fell by more than 25 per cent in midday trading on Tuesday in the United States.
Founded in 1892, Kodak revolutionised photography with George Eastman’s first camera, promoted with the slogan: “You push the button, we do the rest.”
By the 1970s, Kodak controlled 90 per cent of the U.S. film market and 85 per cent of camera sales, but failed to adapt after inventing the digital camera in 1975.
The company filed for bankruptcy in 2012, burdened with $6.75 billion in debt and over 100,000 creditors.
It experienced a brief resurgence in 2020 when the U.S. government enlisted Kodak to produce pharmaceutical ingredients, sparking a short-lived stock surge.
Without securing new financing, one of America’s most recognised and historic brands could face closure in the near future.
