Kodak may well have sought insolvency advice recently, the company has suffered financially over recent years, competitors have quickly over took the once market leader, as they have moved forward increasingly with the digital age. Kodak recently filed for bankruptcy protection, to allow it time to assess its position without having to face looming creditors and hopefully take the essential and necessary steps to allow it full corporate recovery.
It is believed one of its major down falls was the decision to focus more on manufacturing printers, and shift away from the camera market. An odd move since the camera was the reason for the companies original success. Kodak has been in existence for over 133 years and its directors unanimously voted for taking these insolvency advice measures to create the best chance of survival.
Ironically, Kodak’s problems stemmed from their original success – selling film, which made them an over night success for decades. The digital camera was born and film sales plummeted. Its not like Kodak did not see this coming, how could anybody not see the digital age come galloping over the horizon at the speed of light. They simply hesitated for too long, it was felt moving away from film would essentially disembowel the business and this caused them to stall on formulating a new strategy, the result – competitors over took!
Kodak are implementing many of the measures that would be included as part of any insolvency advice strategy. A credit facility to the tune of £615million through Citigroup has been put into place and shares have been suspended, which have been in decline for the last decade. Concentrated efforts will be aligned to new product development in the area of digital and future technological advancement, an area, if tackled correctly is the most likely to spring board them back to success.
The best advice any business can take is to follow in the foot steps of Kodak in terms of the way they are tackling their corporate recovery. As soon as problems arise, do not ignore the situation, seek insolvency advice and put measures in place to try and save your business. There is nearly always a solution to any problem and we can help you find it. Burton Sweet wishes Kodak a successful future and full business recovery.