Eastman Kodak, the firm is associated with cameras and printers, has filed for bankruptcy revealing the extent to which its financial difficulties have forced it to to the step of entering into Chapter 11.
The firm revealed that it has been given a $950m credit line from CitiGroup, designed to keep it going through the bankruptcy process. The vendor expects to have sorted itself out by 2013 trimming further jobs and making changes to get the balance sheet looking rosier.
Although the vendor has been putting the squeeze on printer rivals with a recent high profile advertising campaign highlighting the competitiveness it offers on ink the finances in the background have been in a bad way for quite some time.
One source said that anyone who dealt with the company knew that the numbers were bad but there was an admiration for the way it continued to promote the brand and look for business, somew of which could be fulfilled by channel partners.
Kodak revealed that the move into bankruptcy will give it a chance to restructure, which will happen not just in the US but also have an impact on European operations.
"Kodak is taking a significant step toward enabling our enterprise to complete its transformation," said Antonio M. Perez, chairman and CEO at Eastman Kodak.
"At the same time as we have created our digital business, we have also already effectively exited certain traditional operations, closing 13 manufacturing plants and 130 processing labs, and reducing our workforce by 47,000 since 2003. Now we must complete the transformation by further addressing our cost structure and effectively monetizing non-core IP assets," he added.