Kodak Confirms it has no Plans to Cease Operations

Eastman Kodak, the legendary photography company, has stated that the media reports about it “ceasing operations, going out of business, or filing for bankruptcy” are false.

The clarifying statement comes after its second-quarter earnings report, as covered by CNN, issued a "going concern" warning, admitting it may struggle to meet nearly $500 million in debt due within 12 months.

In the earnings report, the company also said that this situation “raises substantial doubt” about its ability to keep operating, and to free up funds, it plans to stop making payments into its retirement pension plan.

Many media outlets concluded that it's a red flag about the company’s ability to continue operating without strong financial moves. These revelations also contributed to a last-minute 25% drop in Kodak’s stock price.

What Kodak Says About Its Finances

Kodak has clarified that its earlier "going concern" statement is a required disclosure due to complex accounting rules—not a signal that the company is shutting down.

Company leaders say they plan to use approximately $300 million expected from the reversal of their U.S. pension plan (KRIP) to pay down debt.

Keep in mind that in another statement to DPReview, Kodak said that “the KRIP reversion is not solely within Kodak’s control and therefore is not deemed ‘probable’ under U.S. GAAP accounting rules, which is what triggered the ‘going concern.’”. This statement still raises concerns about the company’s financial situation.

Nonetheless, the company remains optimistic about restructuring or refinancing its remaining obligations.

Kodak’s History: From Film Giant to Bankruptcy and Beyond

Eastman Kodak’s story began in 1879, when founder George Eastman secured his first patent for a plate-coating machine. By 1888, he launched the first Kodak camera for $25, paving the way for more than a century of dominance in cameras and film. At its peak in the 1970s, Kodak controlled about 90% of the U.S. film market and 85% of camera sales, according to The Economist.

Ironically, the technology that would help end that dominance was one Kodak itself pioneered: the first digital camera in 1975. The company failed to fully embrace the digital shift and ultimately filed for bankruptcy in 2012, burdened with $6.75 billion in debt and 100,000 creditors.

In 2020, Kodak briefly made headlines when the U.S. government enlisted it to help produce pharmaceutical ingredients, sending its stock surging so sharply that trading was halted 20 times in a single day.

Today, despite ongoing financial struggles, Kodak continues to make film and chemicals for industries like filmmaking, while also licensing its brand and working to grow its pharmaceutical ingredients division.