Kodak faces bankruptcy after 133 years of business

Kodak, the 133-year-old photography company, is warning investors that it may not be around for long. The company released a report Monday admitting it lacks guaranteed financing to pay off $500 million in debt, putting its future in doubt.

Kodak plans to cut costs by eliminating pension payments, but says the tariffs will not have much of an impact on its business because many products, including cameras and film, are made in the United States.

CEO Jim Continenza said the company remains committed to its long-term plan despite the challenging economic environment.

"In the second quarter, Kodak continued to execute in line with our long-term plan despite challenges associated with an uncertain business environment."

Jim Continenza, CEO of Kodak

A Kodak spokesman later said the company was confident it could repay most of its debt before it fell due and restructure the rest. But investors reacted sharply: Kodak shares plunged 25% on Tuesday.

Founded in 1892 (though its roots go back to 1879, when George Eastman received his first patent for a plate coating machine), Kodak revolutionized photography by making it accessible to the masses. George Eastman coined the slogan “You press the button, we do the rest” and created a brand with a meaningless but memorable name.

Kodak peaked in the 1970s: 90% of the film market and 85% of cameras in the United States. But in 1975, the company invented the digital camera — and failed to monetize the breakthrough. In 2012, Kodak declared bankruptcy with debts of $6.75 billion.

An attempt to restart in 2020 (production of pharmaceutical components) caused a stir on the stock exchange, but did not save the situation. Today, Kodak continues to produce film, chemicals for the film industry, and license the brand.