Bankruptcy protection is not only for individuals, as many companies also experience financial turmoil. And while sometimes these issues are related to the downturn in the economy, some are also a reflection of the changing market place.
A perfect example of this is the reported expectation that Eastman Kodak Co. will be filing for Chapter 11 reorganization bankruptcy in early 2012. This move would reportedly also end its long history of consumer cameras and photos, but allow space to expand in other ways.
Going forward, it appears the plan would be for the company to go from a consumer business, to a business-to-business company. With this may also come more hiring at the Kodak facility that makes inkjet printers, which could be a step in the right direction to hire those who are currently unemployed.
The report by MarketWatch.com claims the plan for Kodak through this bankruptcy, is to sell 100 percent of its photo business, as well as a large segment of its patent library. From here the company could then focus its energy on digital printing for business-to-business.
Overall, news of the likelihood of Kodak filing for Chapter 11 highlights the fact that filing for bankruptcy can be a financially positive move for a company. For Kodak, while consumer photos and cameras used to be the way the company was making money, over the years this has changed. Luckily, it seems the company is embracing change, and is deciding to instead focus on business-to-business, and continuing the legacy of the Kodak brand.
Source: Dayton Business Journal, "Report: Kodak to focus on printing after bankruptcy," Jan. 8, 2012