In a report to the US Securities and Exchange Commission (SEC), Kodak writes that there are “doubts about the company’s ability to continue operating.”
The 133-year-old photo company has been struggling to make a profit for some time.
You know Kodak (if you’re not too young, that is) as the iconic photography company that made cameras and film for years. With the rise of digital photography, it has been forced in recent years to expand into industries such as chemicals and commercial printing.
But even those matters appear to be looming. The company issued a warning to the US SEC, a requirement for public companies whose earnings deteriorate. Last year, Kodak went from a $25 million profit to a $26 million net loss.
It also spent $46 million of its assets last year, of which approximately $155 million now remains. In its warning, Kodak also stated that it still has approximately $500 million in debt to repay over the next twelve months.
Kodak already went bankrupt once, in 2012, but was relaunched in 2013. To pay off some of its debts, the company is reportedly tapping into its pension fund. This may sound more dramatic than it actually is. Kodak’s pension fund has made millions in profits on its investments in recent years, and the company hopes this move will help it right the ship. Kodak’s shares, however, fell by 26% following the announcement.