Eastman Kodak, the iconic photography company founded in the 19th century, has issued a warning to investors that it may not be able to continue operating.
In its latest earnings report released Monday, Kodak revealed it lacks “committed financing or available liquidity” to meet roughly $500 million in upcoming debt payments. This financial strain “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. The company also noted that tariffs are unlikely to have a significant impact on operations since most of its products—including cameras, inks, and film—are manufactured in the United States.
Despite the challenging outlook, CEO Jim Continenza expressed optimism that Kodak is “making progress” on its long-term strategy. A company spokesperson told CNN they remain “confident” about paying down a large portion of their debt early and refinancing or restructuring the remainder.
Kodak’s shares (KODK) dropped more than 25% in midday trading on Tuesday (U.S. time).
Founded in 1892, Kodak revolutionized photography with George Eastman’s first camera, famously promoted with the slogan: “You push the button, we do the rest.” By the 1970s, the company dominated the U.S. film market with a 90% share and controlled 85% of camera sales.
Ironically, Kodak invented the digital camera in 1975 but failed to capitalize on the technology. The company filed for bankruptcy in 2012, weighed down by $6.75 billion in debt and 100,000 creditors.
Kodak experienced a brief resurgence in 2020 when the U.S. government enlisted it to produce pharmaceutical ingredients, sparking a surge in its stock price. Today, the company continues to produce film and chemicals—used even in Hollywood productions—and licenses its name for various consumer products.
However, without fresh financing, this once-mighty American brand may soon fade to black.
