Kodak says there’s ‘substantial doubt’ it can stay in business

Kodak announced in a Securities and Exchange Commission (SEC) filing on Monday that there was “substantial doubt” about the company’s ability to stay in business. 

The company plans to pay off some of its debt and preferred stock using money it expects to get back from its pension plan. The company is hoping to change the terms, push out due dates or refinance its remaining debt and preferred stock obligations, which are payments promised to holders of special shares that usually get paid before regular shareholders.

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Still, since these plans depend on things outside Kodak’s control, they aren’t considered reliable under U.S. accounting rules. Because of this, there’s serious concern about whether the company can stay in business, as of the date it released its second-quarter financial results, according to the filing. 

Kodak pioneered film photography and dominated the market for much of the 20th century. It became a household name, known for products like disposable cameras, and at its peak, controlled over 80% of the U.S. film market.

Kodak invented the first digital camera in 1975, but failed to embrace the technology, fearing it would cannibalize its film business. 

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When digital photography took over, Kodak’s core business collapsed. While it eventually tried to jump into the digital photography game, it struggled to keep up with emerging competitors like Canon, Sony and Nikon, all of which embraced it early on.

Riddled with debt, it filed for bankruptcy in 2012. 

While the company emerged from protection in 2013, it never regained its dominant position in the market. To try to save its business, it pivoted from consumer photography to commercial printing and tech. It simultaneously tried to revive its brand through licensing deals and bold experiments, such as collaborating with Forever 21 on a clothing collection, before the clothing chain collapsed, and with Urban Outfitters to sell its products.