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Links of the Day, Kodak version:

Kodak’s bankruptcy filing is the biggest news story in Rochester in a decade. The Democrat and Chronicle published an 8-page section and devoted the entire front page to the news. Television stations produced additional special reports.

– Kodak is poised to spin off assets and layoff a lot of people, reports Bloomberg:

Bankruptcy allows sales of the photography divisions and patents Chief Executive Officer Antonio Perez wants to jettison to pay off legacy employee benefits and creditors, as he focuses Kodak on faster, flexible commercial and consumer digital printers and the company’s superior ink.

Bankruptcy makes it easier for Kodak to sell assets to pay for layoffs…

– Buffalo has a message for Rochester: Join the club. The Buffalo News compares Kodak’s bankruptcy filing with the loss of big companies in Buffalo. But Rochester has been better able to bounce back from ongoing job losses from big corporations. Rochester now accounts for half of all job growth Upstate.

– The bankruptcy judge in Kodak’s case is quoted in the New York Times:

Allan L. Gropper, the federal bankruptcy judge overseeing the case, said, “Kodak is a great American institution, and every creditor here, I’m sure, wants to see it get out of Chapter 11 as soon as possible and to prosper. The question today is how to do that quickly and simply.”

– Kodak still makes a lot of motion picture film, but its relationships with Hollywood studios, some of them listed as creditors, is strained. Reuters reports:

Insiders say Hollywood may be on the verge of scaling back a decades-old symbiotic relationship, and seeking business alternatives.


…studios have been stockpiling Kodak film in anticipation of a bankruptcy filing. Now, they are also talking with other film suppliers, like Fuji (4901.T).

That executive said he received a letter from Kodak on Thursday stating it would continue to supply film but not addressing the matter of its debts – a potential sticking point in future relationships.

– A column in Ad Age suggests Kodak’s problem wasn’t a slow move to digital, but branding. The author says consumers equate Kodak with film and the company should have renamed its other lines. Not mentioned is the fact profit margins on digital products are razor thin.

5 Responses to Kodak: The Day After

  1. January 20, 2012 at 10:26 am Ikejames responds:

    Are we getting reactions from shareholders? I am more than a little surprised that Perez is continuing as both Board Chair and CEO. Given Mr. Perez’s stewardship of the company, it may be a good time to separate those positions.

  2. January 20, 2012 at 10:49 am Michael Bloch responds:

    If the future of Kodak is based on serving the printing industry, the big question is, “Are Kodak’s products any good and how do they compare to competitors?” It would be interesting to hear opinions from people in the printing industry. We certainly have enough of them in Rochester.

    Perez is not necessarily at fault. The big mistakes that doomed Kodak were made long before he joined the company. George Fisher and past marketing VP Carl Gustin deserve a huge portion of the blame.

  3. They fix the ESP clogging printerhead problems yet? I put mine at the curb and it took a while for it to disappear, even on Highland Ave.


    Got some time, try googling it or watching how many free ones are going on CL.

  4. January 20, 2012 at 11:57 am Ikejames responds:

    @ Michael Bloch
    Perez was brought in from HP to help transform the company to the consumer and commercial printer business. Regardless of his past record with Kodak, what they need now is a CEO that has experience rebounding from bankruptcy. That is not something Perez has experience with, is it?

  5. Yes, I agree. The person also should have knowledge of the graphics arts industry.

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