The iconic photography brand Kodak, on the verge of disappearing

BarcelonaThe iconic photography brand Kodak is on the ropes. The company's shares plummeted more than 25% on Tuesday after it warned investors that it risks being unable to continue operating much longer. In a filing, the firm admitted that it does not have "committed financing or available liquidity" to pay the next $500 million in debt obligations. "These conditions raise substantial doubt about the company's ability to continue as a going concern," Kodak said in a statement.

The company announced on Monday that it lost $26 million during the second quarter of the year, compared to the $25 million it earned a year earlier. Its revenue also fell 1% to $263 million. "Kodak has debt maturing in 12 months and does not have the committed financing or liquidity available to meet these obligations if they mature on their current terms," the company stated in its filing Monday with the Securities and Exchange Commission (SEC). To address this financial hardship, the company plans to raise cash by ceasing to pay into its pension plan.

However, CEO Jim Continenza assured that during the second quarter, Kodak continued to "make progress" on its long-term plan "despite the challenges of an uncertain business climate." Regarding the tariffs, the photography firm states that the new levies have not yet had a "material" impact on its operations, but that it is evaluating the potential effects going forward. "It is important to note that Kodak is committed to producing in the United States, and our expectation is that the tariffs imposed by the U.S. government are designed to protect American businesses like ours," the company stated.

Centenary company

Kodak's story began in 1892, 133 years ago, after George Eastman and Henry A. Strong teamed up to design a camera that ran on a roll of film. The company successfully brought this product to the mass market and became one of the largest producers in the industry for most of the 20th century. Beginning in the 1990s, the company began to suffer financially with the entry of competitors such as Fujifilm and the transition from traditional analog to digital photography. The company then also attempted to expand its business by shifting toward printing services.

Kodak already declared bankruptcy in 2012., but the company ultimately pulled through. At the time, it had 100,000 creditors and a total debt of $6.75 billion. In 2020, the company sprung another surprise when the US government selected it to produce pharmaceutical ingredients during the COVID-19 pandemic, sending its stock price soaring.