As many of our Tennessee readers may know, nobody is immune from financial difficulties. According to gossip magazines, many celebrities have filed for bankruptcy. Entire towns have filed for bankruptcy. Even some of the nation's largest corporations have felt the sting of the economy and lost millions of dollars in order to stay afloat. One of these companies is Eastman Kodak Co - most commonly known as Kodak. The company filed for business bankruptcy in January 2012 and is just now starting to come back into its own.
Kodak was once considered a pioneer in the photography field. However, advances in technology have led consumers to consider other forms of picture-taking - including digital cameras and smartphones. Kodak could not keep up with this growing trend and filed for bankruptcy.
Recently, Kodak received court approval to emerge from bankruptcy in order to operate as a smaller company. Kodak will focus on growing commercial markets, with the goal of a stronger balance sheet. It will focus on new packaging technology as well as high-speed digital printing.
As it emerges from Chapter 11 bankruptcy, Kodak will end up with a public profile that is less prominent. Its expected annual revenues will drop to $2.5 billion - about half of the revenue the company had when it filed for commercial bankruptcy.
A Chapter 11 bankruptcy serves as a reorganization plan. It allows businesses to get a fresh start and reinvent their business in order to make a profit. It can be difficult to regain financial control after a bankruptcy and businesses must stay on top of current trends in order to stay competitive. But bankruptcy reorganization allows companies to restructure their portfolios and begin again on a fresh note.
Source: NBC News, "A new Kodak moment: Emerging from bankruptcy