The iconic photography company Kodak could go out of business within a year. The 133-year-old American company warned investors Monday in a regulatory filing that there’s “substantial doubt” it can keep its doors open unless it pays down its debts or renegotiates its terms.
In the filing, Kodak warned it has “debt coming due within twelve months and does not have committed financing or available liquidity to meet such debt obligations if they were to become due in accordance with their current terms.” The company added that these conditions “raise substantial doubt about Kodak’s ability to continue as a going concern.”
Although Kodak introduced the world’s first digital camera back in 1973, the company failed to keep up with the changing times, as everyone now carries a camera in their pocket 24/7, making standalone cameras and film less relevant for most people.
“In the second quarter, Kodak continued to make progress against our long-term plan despite the challenges of an uncertain business environment,” Kodak CEO Jim Continenza said Monday in the company’s second quarterly earnings report.
In its latest quarter, Kodak reported a $26 million net loss. Since the end of last year, the company has burned through $46 million in cash, leaving it with just $155 million on hand. Meanwhile, Kodak is carrying roughly $500 million in debt.
Kodak did not immediately respond to a request for comment from Gizmodo. However, a company spokesperson told CNN on Tuesday that it is “confident it will be able to pay off a significant portion of its term loan well before it becomes due, and amend, extend, or refinance our remaining debt and/or preferred stock obligations.”
Kodak said last year it would end its pension plan to help reduce its debt.
“The termination of our U.S. Kodak Retirement Income Plan and subsequent reversion of excess funds to pay down debt is progressing as planned,” said Kodak CFO David Bullwinkle in the company’s earnings report.
This isn’t the first time the company has faced financial struggles. It filed for bankruptcy in 2012. Since then, the company has expanded into other industries it believes have growth potential, including commercial printing services and advanced chemical manufacturing.
In 2018, Kodak even jumped on the blockchain and cryptocurrency bandwagon, announcing plans to launch a new digital token called KodakCoins. These tokens were meant to power KodakOne, a blockchain-based rights management platform designed to help photographers register and license both new and existing work through a secure digital ledger.
But the project never got off the ground, and Kodak eventually scrapped the plan.
Now, the company is highlighting its latest move into pharmaceuticals. The company is opening a manufacturing facility in Rochester, NY, to produce key starting ingredients for drugs.
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