Cash threats to Kodak’s exposure
THE FUTURE of Kodak in SA remains uncertain as news of the US company’s financial woes hit the headlines last week.
The company has about 180 Kodak Express stores around the country, but owners and employees have not been informed of how the international situation will affect their businesses and jobs as the Kodak head office in New York was refusing to comment.
Questions put by The Star to the Eastman Kodak Company on the future of the stores received the following response from Christopher Veronda, the manager of corporate communications: “Kodak, as a matter of long-standing policy, does not comment on market rumours or speculation. We are focusing on our objective of becoming a profitable, sustainable company.”
Kodak, as a company, no longer exists in SA. All the Express shops are individually owned.
Kodak has been a household brand and a pioneer of cameras for 130 years, first entering the SA market in 1913.
Kodak has reportedly been suffering financial losses and was forced to use its cash reserves last year when the price of its shares fell.
The company warned last year it would run out of money without selling its patents or securing new lending, which it has subsequently done, disposing of about 1 000 patents.
It has been threatened with removal from the New York Stock Exchange unless it manages a financial recovery.
Kodak suspended operations in SA in 1986 for political reasons, but returned in 1994.
It started off as a company specialising in cheap cameras, film and processing, evolving into digital technology.
It was also responsible for the introduction of photo booths and 24-hour photo-printing services.