The Last Picture Show: Kodak Says Tales Of Its Demise Are Premature

Core Viewpoint - Kodak has clarified that it is not ceasing operations or filing for bankruptcy, despite misleading media reports following its Q2 filing, which included a going concern note due to significant debts [3][5]. Financial Performance - In Q2, Kodak's sales decreased by 1% to $263 million, and gross profit margins fell from 22% to 19%, resulting in a net loss of $26 million compared to a net profit of $26 million in the previous year, attributed to rising aluminum and manufacturing costs [6][7]. - Kodak has approximately $500 million in debts due within 12 months and lacks committed financing or available liquidity to meet these obligations [3][4]. Strategic Moves - Kodak is in the process of selling its U.S. pension fund, which is expected to generate around $300 million in cash, aiding its financial position [4]. - The company has experienced a resurgence in film demand, particularly among Gen Z consumers, who are drawn to retro technology [12][13]. Brand Positioning - Despite its struggles, Kodak remains a well-recognized brand in various regions, particularly in the Gulf, and has seen a mini resurgence in the U.S. due to the retro camera trend [10][11]. - Kodak produced more than twice as many film rolls in 2019 compared to 2015, indicating a growing interest in film photography [11]. Historical Context - Kodak's decline is attributed to its failure to adapt to digital photography and the rise of smartphones, contrasting with companies like Apple that successfully reinvented themselves [9][13]. - At its peak, Kodak employed over 140,000 workers, but now has a workforce of about 3,400 [8].