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.