Eastman Kodak, the 133-year-old photography company, is warning investors thats it might not survive much longer.
In its earnings report Monday, the company warned that it doesn’t have “committed financing or available liquidity” to pay its roughly $500 million in upcoming debt obligations. “These conditions raise substantial doubt about the company’s ability to continue as a going concern,” Kodak said in a filing.
Kodak aims to conjure up cash by ceasing payments for its retirement pension plan. It also said that it doesn’t expect tariffs to have “material impacts” on its business because it manufactures its many of its products, includings cameras, inks and film in the United States.
“In the second quarter, Kodak continued to make progress against our long-term plan despite the challenges of an uncertain business environment,” said Kodak CEO Jim Continenza in the earnings release.
In a statement to CNN Tuesday, a Kodak spokesperson said that it’s “confident it will be able to pay off a significant portion of its term loan well before it becomes due, and amend, extend or refinance our remaining debt and/or preferred stock obligations.”
Shares of Eastman Kodak (KODK) slumped more than 25% in midday trading Tuesday.
The Eastman Kodak Company incorporated in 1892, but the company traces its roots back to 1879, when George Eastman obtained hist first patent for a plate-coating machine. In 1888, Eastman sold the first Kodak camera for $25.
Despite its recent losses, Kodak recently said it aims to expand that part of its business. The company continues to manufacture films and chemicals for businesses, including the movie industry, and it licenses its brand for a variety of consumer products.
