Upstate New York’s Kodak Fights Off Shutdown Talk

For more than 130 years, Eastman Kodak has been part of the fabric of Upstate New York. From the days when families snapped photos on Kodak film to today’s surprising resurgence of old school cameras, the Rochester based company has been woven into the lives of people worldwide. So, when headlines recently suggested Kodak might be shutting down, it sent a wave of worry.

But Kodak is pushing back, saying loud and clear that it’s not done yet.

Where the Rumors Began

The panic started with Kodak’s latest earnings report. Buried in the fine print was something called “going concern” language. In plain terms, it’s an accounting red flag that hints a company might not have the money or financing lined up to cover its obligations in the coming year.

Pair that with Kodak’s $500 million debt load and it’s no wonder the news sparked a frenzy. Major news outlets reported on the possible trouble, Kodak’s stock took a nosedive of more than 20 percent, and whispers of bankruptcy began to spread.

Kodak’s Side of the Story

Kodak leaders say those whispers are exaggerated. In fact, the company issued a statement insisting it has “no plans to cease operations” or file for bankruptcy. Instead, executives laid out a plan to pay off, extend, or refinance debt that’s coming due. If all goes according to schedule, they say Kodak could enter 2026 with its strongest balance sheet in years, almost completely debt free.

They also pointed out that the “going concern” language wasn’t a panic button, but a technical disclosure required under accounting rules.

A Pension Fund Lifeline

At the center of Kodak’s plan is its long standing pension program, which is winding down this year. Once that plan terminates in December 2025, Kodak expects to free up around $500 million to $300 million in cash and another $200 million in investment assets.

By law, Kodak has to use that $300 million right away to pay down a large chunk of its $477 million in term debt. That still leaves $177 million in debt and $100 million in preferred stock, but Kodak executives say they’re confident they can handle it.

For retirees and current employees, the company has promised that benefits already earned won’t disappear. Workers will be given options like a lump sum payout or an annuity.

Kodak’s Long Road of Challenges

Of course, Kodak has been through rough patches before. Once the undisputed king of film photography, the company stumbled as digital cameras took over. It even filed for bankruptcy in 2012 and yet somehow, Kodak has continued to reinvent itself and find its footing.

Get our free mobile app

In a twist of fate, younger generations are now fueling a comeback of sorts by snapping up film cameras, disposable cameras, and other “retro” gadgets that go back to Kodak’s golden years. That wave of nostalgia has given the brand new energy, even as it works to find a sustainable future in today’s market.