Deposed celluloid king Kodak files for bankruptcy protection

Photo equipment company Eastman Kodak has filed for bankruptcy protection and secured USD 950 million in financing from Citigroup. The 133-year old company will continue normal business for customers during the proceedings. The inventors of the hand held camera have had a somewhat Darwinian struggle for survival in recent decades, finding it difficult to adapt to the digital age. Profits have plunged as the company has floundered trying to restructure its business to exploit new markets, such as printers and software. “Kodak is taking a significant step toward enabling our enterprise to complete its transformation,” said Antonio M. Perez, Chairman and Chief Executive Officer.

Recent years have seen major upheaval for the company as its former core business in camera film has shrunk exponentially. “We have also already effectively exited certain traditional operations, closing 13 manufacturing plants and 130 processing labs, and reducing our workforce by 47,000 since 2003,” Perez said. The move to file for bankruptcy protection was described by Perez as a unanimous decision by the board of directors and was, in their opinion, the best strategy at the moment. Kodak's employees could be affected by proceedings. The company, however, has not released any specific information about redundancies. The firm will file monthly operating reports with the bankruptcy court and these reports will be made available to investors. Liam Lever, liam@romania-insider.com (photo source: Kodak)