Kodak restructures amid bankruptcy battle

Jan 10, 2012

US photography giant Eastman Kodak, fighting to keep bankruptcy at bay, announced Tuesday a major restructuring to speed up its transformation into a digital company.

Kodak said it had reduced three segments into two on January 1: one focused on the general public and the other on professionals.

Kodak said the new business structure was "designed to increase productivity, reduce cost and accelerate its transformation into a digital company that delivers sustainable profitability and creates value for its stakeholders."

The move involves a reshuffling of top posts in the venerable US company, founded in the late 19th century.

"As we complete Kodak's transformation to a digital company, our future markets will be very different from our past, and we need to organize ourselves in keeping with that evolution," Antonio Perez, Kodak's chairman and chief executive, said in a statement.

Investors cheered the news of Kodak's restructuring, sending shares 30.4 percent higher to 52 cents in midday New York trade.

The company did not mention its dire financial difficulties that have spurred speculation it will file for soon.

A week ago the told the company, once one of the fabled industrial Average's 30 blue-chip stocks, that it faces delisting from the exchange if it cannot get its stock price back above $1.00 level.

In its heyday, in 1996, Rochester, New York-based company's shares topped $80 -- just at the outset of the digital photo revolution that eventually replaced the need for consumers to buy Kodak film, once a virtual monopoly in the US market.

Explore further: Alibaba surges in Wall Street debut (Update)

add to favorites email to friend print save as pdf

Related Stories

Kodak tries to quash bankruptcy fears; shares jump

Oct 03, 2011

(AP) -- Eastman Kodak Co. shares soared more than 57 percent Monday after the photo company tried to quash investor fears of a bankruptcy, which had caused shares to lose more than half their value on Friday.

Kodak loses third board member in 2 weeks

Jan 01, 2012

(AP) -- Eastman Kodak Co. says another member of its board of directors has resigned - the third director to exit the struggling company in the past two weeks.

Report: Kodak may file for bankruptcy

Jan 05, 2012

An uncomfortable suspicion that an icon of American business may have no future pushed investors to dump stock in Eastman Kodak Co. Wednesday.

Recommended for you

Alibaba makes Wall Street debut

Sep 19, 2014

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

Sep 19, 2014

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

Alibaba mega IPO caps founder Jack Ma success tale

Sep 19, 2014

When Jack Ma founded Alibaba 15 years ago he insisted the e-commerce venture should see itself as competing against Silicon Valley, not other Chinese companies. That bold ambition from a time when China was ...

User comments : 0