Kodak is warning that its future in business is looking very blurred.
The iconic 133 -year -old business on Monday warned that there is “adequate doubt” about the ability to continue as an concern as it may not have financial resources to meet its future debt obligations, as of August 11, as of August 11, as of August 11. Regulator filingA so -called anxiety warning is an accounting term indicating a risk that a business can turn off operations.
Kodak’s shares fell in trading on Tuesday morning to $ 1.73 or 26%, $ 5.05. Arrived for the comment, a spokesperson of Kodak pointed to a statement in his regulatory filing.
Warning photography is the latest development in the stored history of the company, including one of the first consumer cameras in the 1880s and to include large -scale manufacturing film rolls equally for hobbys and professionals. But Kodak struggled to adapt when digital cameras surpassed the film began in the 1990s, leading to a bankruptcy filing in 2012.
Its current financial crunch is associated with about $ 500 million in short -term debt obligations, as well as more than $ 200 million in pension liabilities. Last year, Kodak said that it would abolish its pension scheme to reduce the loan, According For Wall Street Journal.
Chief Financial Officer David Bulwinkle said in a statement that Kodak should have a clear understanding by “August.15.
A codak moment
Rochester, New York -based Eastman Kodak, was founded in 1892 by the inventor George Eastman, the mass produced the famous brownie and instamatic cameras, making photography popular as a pastime for generations of Americans. Its yellow and red film boxes were omnipresent in photo shops and other retailers.
Eastman said that according to the Kodak website, his goal was “to make the camera facilitating as a pencil”.
But Kodak faced competition from Japanese companies including Fujifilm in the 1990s, as well as changes in digital technology, leading to filing for it Insolvency conservation in 2012.
The company sold many of its businesses and patents, while the camera was closed to the manufacturing unit, which made it famous earlier. A year later it was approved for its plan to emerge from the court inspection.
At that time, Kodak wanted to re -create himself as a new, very small company, focused on commercial and packaging printing.
Kodak is now close to the completion of a manufacturing plant to create regulated drug products. The company already makes irregular major early materials for pharmaceuticals. Retrofitted feature is expected to begin production later this year.
