Eastman Kodak files Chapter 11 bankruptcy
People visit the Kodak display at the International Consumer Electronics Show (CES) in Las Vegas earlier this month.
January 19th, 2012
05:53 AM ET

Eastman Kodak files Chapter 11 bankruptcy

Eastman Kodak Company filed for Chapter 11 bankruptcy protection in New York early Thursday.

Kodak listed total assets of $5.1 billion and debts of $6.75 billion in the filing in the southern district of New York.

Kodak said it has obtained $950 million in financing from Citibank to maintain operations. The company said the credit facility is still subject to court approval.

Kodak said it has enough liquidity to continue to operate during the bankruptcy process.

The company's shares, which had already dropped more than 90% in the past year, fell further this month after the Wall Street Journal reported that the company was preparing for a bankruptcy filing in case an attempt to sell a number of digital patents failed.

A day before that report Kodak disclosed that the New York Stock Exchange had warned that it could be delisted in six months if its struggling stock price does not recover. The warning was triggered by the fact that the stock's average closing price has been less than $1 per share for thirty consecutive trading days.

Earlier this month, Kodak announced it had streamlined its corporate structure as part of the ongoing effort to evolve from film to digital.

Kodak said the company is now structured into two divisions, the commercial segment and the consumer segment, as of Jan. 1. These segments will report to the newly created chief operating office, which is led by Philip Faraci and Laura Quatela.

The company was previously organized into three divisions, the graphic communications group, the consumer digital imaging group and the film, photofinishing and entertainment group.

Kodak was a relatively early pioneer in the field of digital photography, though it has been slow to leave behind its heavy reliance on outmoded film technology.

Polaroid puts Kodak's failures in focus

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Filed under: Business • Economy
soundoff (45 Responses)
  1. hamsta

    Damn it had to happen when i run out of plutonium for the delorean.how am i gonna get film for my polaroid now?

    January 19, 2012 at 6:03 am | Report abuse |
    • big John

      You will have to get that from polaroid, totally different company.

      January 19, 2012 at 6:24 am | Report abuse |
  2. Fuji

    And stay down.

    January 19, 2012 at 6:09 am | Report abuse |
    • Out with the old...

      Ditto. There's no room for those who can't adapt to change.

      January 19, 2012 at 6:47 am | Report abuse |
  3. Jt_flyer

    Sad day in American history. We lost another pioneer.

    January 19, 2012 at 6:17 am | Report abuse |
    • Out with the old...

      Pioneer... Yeah, and their products and services are still about as old. That's why they're bankrupt.

      January 19, 2012 at 6:45 am | Report abuse |
    • dave in Ohio

      This is what happens when a company denies reality and attempts to force their customers to hold onto and use outdated technology. If Kodak had embraced digital tech early, they would have remained on top, but they tried to promote film instead. They entered the digital world too late, they lost and now it's time to pay the piper. Time to shut them down.

      January 19, 2012 at 6:48 am | Report abuse |
  4. Truth

    This is what happens when corporate officers are incentivized for short term profits and rising stock price and have no incentives to look out for the long term health of the company.

    January 19, 2012 at 6:21 am | Report abuse |
    • Neeneko

      Yeah... perfect example of how 'sell off profitable divisions in order to get high quarterlies and sock options' hurts the company long term. Sadly, this is what happens when CEOs care more about stock prices then long term viability...

      January 19, 2012 at 6:35 am | Report abuse |
    • tct

      So true, sadly people don't see it because purveyors of hysteria keep selling them political stances. We need to plan and incentivize for long term. Politicians on both sides need to admit that infrastructure, research and exploration are investments we can't afford to continue underfunding.

      January 19, 2012 at 6:53 am | Report abuse |
  5. Kris

    I grew up shooting and processing Kodak films and papers n the 80's. I hate to see this happen.

    January 19, 2012 at 6:23 am | Report abuse |
    • big John

      This is my bread and butter, I work here. This is what happens when you pay CEO's millions regardless of job performance. Kodak has 17,000 employees and declining. In it's hayday there were 145,000. When you send every decent job to China who is left here to buy product? Other companies need to take notice of how not to operate.

      January 19, 2012 at 6:29 am | Report abuse |
    • Hinterarsch

      KODAK is another vitim of the brillinance of Harvard Business School. Common sense would have saved this company but that is not something Harvard graduates have.

      January 19, 2012 at 6:54 am | Report abuse |
  6. Snapshot

    this is just another example why. . . liberal politics & liberal business R&D needs to be fully implemented in this country. . everything changes and evolves. . .cannot stay conservative in "old fashioned ideas in socieaty social issues as well as business". . American used to be the leaders in changing everything. .

    January 19, 2012 at 6:28 am | Report abuse |
    • big John

      Ahhh, the Kodak CEO is on Obama's councel for job creation (liberal). He is attending dinners at the white house with Obama while he cuts jobs and sends them to China. Liberalism at work. Not good for America.

      January 19, 2012 at 6:33 am | Report abuse |
    • dave richman

      Snapshot -- Look again snappy, its has a lot to do with "no more film", and stuck in the past, and little to do with politics.

      January 19, 2012 at 6:39 am | Report abuse |
    • David

      Dave... sssshhhh... it's election season. Everyone has their right to think that every failure of every kind is the sole responsibility of the other party's politicians. You don't remember that?

      But FYI, I think it is probably true that they just screwed up, and forgot how to focus on the winners. It happens to the best, even to once-proud 'pioneers.'

      January 19, 2012 at 6:54 am | Report abuse |
  7. TORI

    they can emerge from this.

    January 19, 2012 at 6:34 am | Report abuse |
  8. Robbie

    Textbook case of a company failing to adapt to a changing climate. Any company still producing digital cameras for more than their retail price in the 2000s with hopes of recouping costs through added services deserved to die. The day the first cell phone prototype with a camera was unveiled they should have been readjusting their strategy and using their large market shares to develop more innovative products. There was a time when Kodak had the resources to develop anything they wanted (including a Kodak branded cell phone that boasted extra camera features or a smartphone app that allowed photo editing) but they failed to do anything, clinging to the hope that digital cameras were the future all the way until the end.

    January 19, 2012 at 6:39 am | Report abuse |
    • John

      I disagree, Kodak should have dove into the DSLR market like Canon, Nikon and others did, but they for some strange reason didn't. I do agree with you that Kodak does have a hard time keeping up with technology.

      January 19, 2012 at 6:49 am | Report abuse |
  9. Philip

    American corporations can't stand the heat, and so they are getting out of the fire.

    January 19, 2012 at 6:41 am | Report abuse |
    • David

      And what about those that can stand the heat? Apple is the #1 company in the world.

      Granted that none of the 'giants' are exclusively American. But that is the lot we are living with right now. All of us.

      January 19, 2012 at 7:00 am | Report abuse |
  10. Noah

    The executives of Kodak should be deeply ashamed of their colossal mismanagement of this iconic American brand. Kodak was a pioneer of the digital revolution, producing the first commercially available digital SLR camera and the first "full frame" digital SLR. Yet the golden opportunities Kodak had in the early days of digital were wasted, and the brand devalued with a constant stream of sub-par consumer compact cameras and printers being released. Fujifilm intiially followed in Kodak's footsteps, releasing several digital camera bodies with the Nikon F mount, but their executives clearly had a vision for the future of photography that Kodak sadly lacked. Look at the current top of the line camera offerings from Kodak and Fuji, and it's no surprise one of the two is going bankrupt. America, where are you now?

    January 19, 2012 at 6:42 am | Report abuse |
    • Linda

      Absolutely - worked for Kodak for 39 years. Management should be very ashamed of themselves for letting a great company get in this position. Way too top-heavy - always has been. Decisions by committee. Individuals find it very hard to make decisions on their own. So very sad to see this day!

      January 20, 2012 at 11:44 am | Report abuse |
  11. crazy media

    does anyone use film cameras anymore?

    January 19, 2012 at 6:45 am | Report abuse |
  12. John

    Kodak has been stuck in the past for years and has a hard time accepting changes in technology. What really baffled me is when they got in the digital camera market, they started really good and I thought they would continue to do good in that market. Then all of a sudden they put the brakes on that section of the market, while other companies such as Canon and Nikon went past them. That was truly baffling to me, it is almost like they took a gun out and shot themselves in the foot.

    January 19, 2012 at 6:46 am | Report abuse |
  13. willard

    This is what happens when you select your CEOs from a small group of really old crusty men. You get bad decisions that steer the company over a cliff. I'd like to say this will be a wake-up call for other companies that have these useless old men, but it will still be business as usual.

    January 19, 2012 at 7:04 am | Report abuse |
  14. Terry

    Kodak was counting on silver coated film being the gold standard, and Kodak failed. Kodak had the opportunity to be a leader in digital imaging technology, as far back as 1982, and again Kodak failed to embrace the fact that technology would make film a thing of the past. A company cannot live forever by licensing it's technologies. Sooner or later, another company will zoom right by licensing geniuses who missed the train ride to the new world of digital imaging. Well, I guess they cannot blame this failure on outsourcing or the Chinese.

    January 19, 2012 at 7:09 am | Report abuse |
  15. cigarman

    Where is Mitt Romney when he is needed? Mitt would go for the ninety five million dollar loan, sell anything the company has, equipment, real estate etc. Then he would shut the doors at Kodak, take Citi Bank`s ninety five million and say, we tried to save the jobs and the company, but they could not be saved. Romney would probably get away with around five hundred million, and tell you, that is the way it is done, and it is all due to Capitalism.

    January 19, 2012 at 7:30 am | Report abuse |
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