Kodak Announces 'Substantial Doubt' Over Its Ability to Stay in Business

Kodak announced "substantial doubt" about its ability to stay in business in a SEC filing. The company plans to pay off debt and preferred stock using pension plan funds, but this depends on factors outside its control. Kodak's core business collapsed with the shift to digital photography and the company filed for bankruptcy in 2012. It is now riddled with debt and has struggled to keep up with competitors.

In a recent Securities and Exchange Commission (SEC) filing, Eastman Kodak announced that it has "substantial doubt" about its ability to continue as a going concern. The company, which has faced numerous financial challenges, is now exploring options to pay off its debts and preferred stock obligations using funds from its pension plan [1].

Kodak, a 133-year-old company once synonymous with photography, is currently unable to meet its debt payments of $500 million due to a lack of committed financing or available liquidity. The company has plans to terminate its U.S. Kodak Retirement Income Plan, sell assets held by the pension plan, and transfer the responsibility to an unnamed insurance company to make future payments [1]. Kodak expects to raise between $530 million and $585 million after taxes through these actions, which would be sufficient to cover its debts [1].

The termination of the pension plan will affect 35,000 participants, including retirees and approximately 2,000 current Kodak employees. Kodak is planning to offer a new retirement plan for current employees after the termination [1]. The company aims to pay down its debt using the retirement funds by December [1].

Kodak's latest financial earnings report for the second quarter ending June 30 showed a decline in revenue by 1% year-over-year, reaching $263 million. The company reported a net loss of $26 million for the quarter compared to net income of $26 million at the same time last year [1]. Despite these challenges, Kodak's Executive Chairman and CEO Jim Continenza remains optimistic about the company's future, stating that Kodak is committed to U.S. manufacturing and plans to focus on serving its customers, strengthening its balance sheet, and developing growth businesses for the future [1].

Kodak's struggles can be traced back to its failure to adapt to the shift towards digital photography. Despite inventing the first digital camera in 1975, the company was slow to embrace the technology, fearing it would cannibalize its film business. This led to a decline in revenue and rising competition, ultimately resulting in the company filing for Chapter 11 bankruptcy in 2012 with debts totaling $6.75 billion [2].

Since emerging from bankruptcy in 2013, Kodak has pivoted to commercial printing and tech, while also trying to revive its brand through licensing deals and collaborations. However, the company continues to face financial challenges and is currently seeking a financial lifeline to avoid shutdown [3].

References:
[1] https://www.entrepreneur.com/business-news/kodak-warns-it-could-shutter-cuts-retirement-pension-plans/495801
[2] https://www.foxbusiness.com/economy/kodak-says-theres-substantial-doubt-can-stay-business
[3] https://nypost.com/2025/08/12/business/kodak-warns-it-may-not-stay-afloat-much-longer-as-shares-plunge/