Is Kodak’s glorious days over? The days when Eastman Kodak Co. ruled the world of photography lasted for more than a century. Then came the most historic moment with turnaround of fortune, this icon of American business is edging towards extinction. Kodak filed for Chapter 11 bankruptcy fortification last week, alarming the Kodak admirers that the 132 years old leading company could become the most storied sufferer of a digital age.
The company faced the whiplash when the stock price fell extremely low on Wednesday, as review report states that the distressed company is about to seek bankruptcy court protection. This has left people to question on the downfall of Kodak, why they have been struggling for years. The Wall Street Journal report said that Kodak is preparing for a Chapter 11 bankruptcy filing “in the coming weeks”.
A filing under Chapter 11 of the US bankruptcy code protects a company from its creditors while it settles with them and initiates to reorganize its business. This is the only way to clear old liabilities, raise immediate fund and set the platform for sales of property and assets that would help survive the remaining businesses. This was claimed by Kodak on Thursday.
Kodak’s best bet may be to put focus more on sustaining and growing of the retail and commercial print business, though this will also be a big challenge. However, there is still a chance that the company will spring back, and can avoid bankruptcy and recover from this worst phase.