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Kodak Goes Belly Up and Files for Chapter 11

Illustration for article titled Kodak Goes Belly Up and Files for Chapter 11

Despite its recent strategy of "sue everybody for everything," Kodak has succumb to its financial pressures and filed for Chapter 11 business reorganization in New York. The iconic photography company isn't dead yet, however, just very broke.

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Kodak has already shuttered 13 manufacturing plants, 130 processing labs, and sheared 47,000 workers from its payroll since 2003 in an effort to offload its unprofitable divisions. Moving forward, Kodak hopes to leverage its existing "digital capture" patents and printing products to create "a lean, world-class, digital imaging and materials science company," said CEO Antonio Perez in a press release. The business restructuring should be completed by 2013. [Engadget]

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DISCUSSION

This only continues to prove a working theory of mine: Businesses that start suing everyone left and right are dying from the inside - with no hope of ever recovering - and will be permanently out of business in a decade. That is: Filing Chapter 11.

I've seen numerous businesses try the lawsuit route after they cease innovating and, to date, they all, without exception, have ended up filing for Chapter 11 about five to ten years later or just closing their doors.

Apple may prove to be the first interesting exception to this rule.