AN ICONIC 133 year-old tech brand has warned of “substantial doubt” over its future as bosses grapple with massive debts.
Kodak pioneered photography for decades but has struggled to keep up with the digital era.
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The ailing US firm has almost $500 million in upcoming debt obligations and no “committed financing” to pay it off currently, according to a regulatory filing.
“Kodak has debt coming due within 12 months and does not have committed financing or available liquidity to meet such debt obligations if they were to become due in accordance with their current terms,” the filing reads.
“These conditions raise substantial doubt about Kodak’s ability to continue as a going concern.”
Kodak was founded by George Eastman in 1880 under the name of Eastman Kodak Co.
His goal was to “make the camera as convenient as the pencil”.
The company is credited with making cameras popular to the masses, especially with disposable cameras long before smartphones.
Kodak also sells other products such as batteries and even TVs in more recent years.
People have shared their dismay at the prospect for Kodak shutting up shop on social media.
“I wonder about Kodak from time to time,” one person wrote on X.
“Sad to see what once was an indispensable name worldwide on the verge of potential collapse.”
Another commented: “I thought they went out of business years ago, back when digital cameras became a big thing.”
However, bosses have said that the “going concern” language in the filing is essentially a required disclosure because its debt comes due within 12 months of the filing.
They hope to find the cash needed by ceasing payments for its retirement pension plan.
“Kodak is confident it will be able to pay off a significant portion of its term loan well before it becomes due, and amend, extend or refinance our remaining debt and/or preferred stock obligations,” a company rep said.
It’s not the first time Kodak has been in financial trouble. Back in 2012, the firm filed for bankruptcy protection.
