The Wall Street Journal is reporting today that Kodak will file for Chapter 11 bankruptcy protection in the next month if they are unable to sell off some very valuable patents.
Once a high flier, Kodak has been burning cash as it tries to transform itself from a company dependent on film sales to one built around commercial and consumer printers. The company’s problems intensified in 2011, as Chief Executive Antonio Perez’s strategy of using patent lawsuits and licensing deals to raise cash to fund the turnaround ran dry.
Looking over their list of available products it’s easy to see how they are not able to keep afloat. It’s a pretty mediocre collection of digital cameras, printers, accessories and, yes, film. I honestly haven’t been keeping track of Kodak other than to think “how can they still be in business?” The most surprising part of the WSJ article is that the company still employs around 19,000 people. They will have to sell a lot of these to make payroll.