Image via WikipediaKodak Files for Bankruptcy Protection - WSJ.com:
"Eastman Kodak Co. filed for Chapter 11 bankruptcy protection in New York early Thursday morning, after the struggling photography icon ran short on cash needed to fund a long-sputtering turnaround.
The storied former blue chip said it had secured $950 million in financing from Citigroup Inc. to help keep it afloat during bankruptcy proceedings."
From USA Today:
""After considering the advantages of Chapter 11 at this time, the board of directors and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak," CEO Antonio M. Perez said in announcing the decision...."
Here is the actual filing
KodakBankDeclaration_Jan2012
(My Finance 402 students should definitely read through it).
When I was at the University of Rochester, EK was a major employer going through layoffs, but I had no idea that that trend had gone on for so long. Again from USA Today:
"As of a year ago, Kodak had 7,100 employees in the Rochester area and 18,800 companywide. The worldwide figure is now 17,000, the company said in its bankruptcy papers, about 8,000 of them in the U.S. It did not give a new Rochester-area figure.At its peak in the early 1980s, the company employed 62,000 people in Rochester and 130,000 worldwide."
It is sad in some respects to see 132 year old firm get into such difficulty, but not unexpected as their products were largely pushed aside by digital photography and (at least speaking from my own experience, their digital cameras (low end) did not last very long. I went through 4 or 5 before switching brands.
1 comment:
I am really sad to hear and read about Kodak which I like it from childhood days film camera even photograph on Kodak paper colour etc. How a company unless keeps pace with the change can perish Kodak is the example . It is a lesson for all.
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