We’re one CEO decision away from getting Sydney Sweeney “nostalgia film” ads plastered all over the internet… 

Eastman Kodak (no relation to Kodak Black), the company that once put a camera in every tourist’s hands and film in every shoebox under grandma’s bed, is warning investors it might be out of the picture entirely in the next 12 months.

(Source: Giphy) 

In an SEC filing this week, the 133-year-old Rochester relic admitted there’s “substantial doubt” it can survive, with roughly $470M in debt coming due and no committed financing to cover it. Translation: They’re standing at the register with no wallet, hoping something magical happens before the bill arrives. Naturally, investors took the hint as shares dropped more than 25% on the news. 

(Source: USA Today) 

As for Kodak’s plan, well it’s simple: Piss off every future retiree by stopping its match into its pension plan and hope advanced chemicals and specialty materials will somehow morph into the next profit engine. What’s interesting though, is that management insists tariffs aren’t the problem, especially since most of their printing plates, inks, and films are made domestically. And yet, they are still getting the guillotine when it comes to demand. 

For instance, revenue last quarter slipped to $263M, down $4M from last year, while gross profit fell 12%. Cash is down 23% since December, to $155M. Ooof. But of course, this isn’t Kodak’s first brush with the obituary page. It already filed for bankruptcy in 2012 after missing the digital revolution it literally invented… case in point: the company built the world’s first digital camera in 1975, then buried it like a family secret. Since then, it’s dabbled in pharmaceuticals, blockchain licensing schemes, and niche chemical production, all with varying degrees of “What the helly?”

(Source: Giphy) 

CEO Jim Continenza says they’ll have a “clear understanding” by Friday on how they’ll meet debt obligations, which is a funny timeline given the company’s been around since Benjamin Harrison was president. If Kodak’s story ends here, it’ll be the rare case of a brand that survived two centuries of tech disruption only to be taken down by the simple fact that you can’t shoot film without money in the bank. 

As for the irony of it all, it’s this: Kodak still has one asset no balance sheet captures: nostalgia. Film photography is having a hipster renaissance, and the brand is still a shorthand for American innovation… at least in memory (see: Kodak shares mooning +6.53% today) . The trouble is, you can’t refinance debt with retro aura, and the debt clock is developing faster than any print in the company’s history. Meaning, keep your eyes on this story as more details come out and place your bets accordingly. Until next time, friends…

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.