A Century of Prosperity
The Curtain Falls with the 'Digital Camera'
Eastman Kodak, the camera and film manufacturer with a 133-year history, is facing a survival crisis due to financial difficulties. Kodak has acknowledged doubts about its ability to continue as a going concern, admitting that it lacks the capacity to repay its debts.
According to CNN on August 12 (local time), Kodak stated in its earnings report released that day, "We have no committed financing or available liquidity to repay approximately $500 million (689.7 billion KRW) in debt," adding, "This situation raises substantial doubt about the company's ability to continue as a going concern."
Kodak added that it plans to suspend pension payments in order to secure cash. The company also noted that, since its main products-cameras, ink, and film-are manufactured in the United States, tariffs are not expected to have a significant impact on its business.
Jim Continenza, Kodak's CEO, said in a press release, "Despite the uncertain business environment, we continued to make progress on our long-term plans during the second quarter."
A Kodak spokesperson told CNN, "We are confident that we can repay a substantial portion of our long-term loans before maturity and modify, extend, or refinance the remaining debt or preferred stock obligations."
Kodak's share price plunged by more than 25% at one point during intraday trading that day.
A Century of Prosperity... The Curtain Falls with the 'Digital Camera'
Eastman Kodak was incorporated in 1892. However, the company's roots trace back to 1879, when George Eastman obtained a patent for a plate-coating machine. In 1888, Eastman sold the first Kodak camera for $25 (34,485 KRW).
At the time, photography required technical knowledge and equipment, making it inaccessible to the general public. However, the Kodak camera was designed so that anyone could easily take pictures. Eastman promoted the slogan, "You push the button, we do the rest."
The name "Kodak" was created by Eastman, inspired by the strong and sharp impression of the letter 'K', without any particular meaning.
For a century, Kodak dominated the camera and film markets. According to The Economist, Kodak held a 90% share of the U.S. film market and an 85% share of the camera market in the 1970s.
However, this golden era ended with the advent of the world's first digital camera, which Kodak itself developed. Although Kodak introduced the first digital camera in 1975, its failure to transition to digital led the company to file for bankruptcy protection in 2012. At that time, the number of creditors reached 100,000, and its debt amounted to $6.75 billion (9.31095 trillion KRW).
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