Kodak’s Future on the Line as $500M Debt Deadline Looms
Published: August 14th, 2025.
Kodak once stood as one of the most recognized names in the world, from the turn of the 20th century through the late 1990s, their cameras, film, and iconic yellow boxes defined photography for the masses. Yet, they have been sending mixed signals about their survival recently.
In their second-quarter financial report, Kodak warned of “substantial doubt” about their ability to keep operating. The language raised alarm, hinting that the 137-year-old company might be nearing the end.
But almost immediately after, they pushed back, saying they planned to repay much of their debt using funds from their U.S. pension plan and were confident they could stay in business.
For investors, customers, and the city of Rochester, New York, where they have been a cornerstone employer, the conflicting messages have left one question hanging: What is really going on?
Kodak’s rise began with George Eastman in the late 1800s. He transformed photography from a complicated process into something ordinary people could enjoy. The Kodak camera, introduced in 1888, came preloaded with film and a promise: “You press the button, we do the rest.”
Through the 20th century, their cameras captured weddings, vacations, and world events. The Brownie camera of 1900 made photography affordable to nearly everyone, and by the 1970s, they commanded more than 80% of the U.S. film market. Their products became part of everyday life, and their name became shorthand for moments worth remembering.
In 1975, their engineers created the world’s first digital camera. They had the technology to lead the next era of photography.
Still, they chose not to aggressively pursue it as executives feared digital images would cut into their profitable film sales.
As digital cameras gained traction in the 1990s and early 2000s, rivals like Canon, Sony, and Nikon seized the opportunity. Then came the camera phone, which accelerated the decline of stand-alone cameras.
However, when Kodak tried to pivot, they were no longer leading the conversation.
Kodak filed for bankruptcy in 2012, selling off large parts of their consumer photography business. What emerged from that restructuring was a slimmer company focused on commercial printing, industrial chemicals, and licensing deals.
The company continues manufacturing films and chemicals for businesses, including the movie industry, and licenses their brand for a wide range of consumer products.
While there is still a small but passionate community devoted to film photography, it is not enough to support the scale of their former empire.
The shift away from their core identity might have made financial sense then, but it weakened their connection with the public.
In the years since, they have tried to keep their name alive through collaborations with clothing brands, retail partnerships, and limited film production for enthusiasts.
Kodak now owes around $500 million in debt, due within a year. They released a statement stating that they plan to use roughly $300 million from their pension fund to pay off a significant portion and then restructure or refinance the rest.
If the pension plan payout comes through as expected, they believe they could be nearly debt-free by the end of 2025.
However, even if their debt plan works, a larger question looms: how can they remain relevant in an era where artificial intelligence rapidly changes how people create and consume images?
AI-powered tools can now generate lifelike photographs without a camera, alter pictures instantly, and mimic film aesthetics with startling accuracy.
If digital photography was the disruption that caught them off guard decades ago, could AI be the next wave that sidelines them further, or could it become a tool they use to reinvent themselves?
Their story is not just about one company’s financial troubles. It is a case study of how even the most dominant players can falter when they fail to adapt quickly to disruptive technology.
Artificial intelligence is now creating similar upheaval in industries that once seemed stable, and their history serves as a reminder of how quickly leadership can disappear.
Photographers, artists, and collectors still swear by their film. However, the broader market has moved on, and their future now rests on whether they can stabilize their finances and find a place in a world they once helped define.