Friday, September 28, 2012

Kodak Steps Away from the Printer Industry

After only recently putting hundreds of millions of dollars into creating a new line of business in desktop inkjet printers, Kodak has already decided to scrap the project. The company announced recently that it is planning to shift its focus in 2013 from ink sales to printers it has sold, which is the most profitable part of that particular business. The company also announced that it would stop selling printers, an area where competition is leaving little room for Kodak.

The news only gets worse from there as the company also announced that it would be asking Federal bankruptcy court for more time to put together a Chapter 11 bankruptcy reorganization plan. Plans like this would spell out how a reorganized company will operate after bankruptcy and the steps that company will take in order to make creditors as whole as possible.

Kodak has made a plethora of big changes ever since filing for bankruptcy back in January in attempts to raise money and cut costs. These measures have included shutting down its digital camera business and selling its online Kodak Gallery operations. Kodak currently has a few other businesses that are also up for sale, including document scanners and still camera film.

Kodak has talked about profits in desktop inkjet printers for a while now, with the company stating that the main profits are found in consumables like the ink itself. According to a recent statement from the company, getting out of the printer business "will significantly improve cash flow in the U.S. beginning in the first half of 2013."

Source: USA Today - Kodak quits printers, wants new deadline
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