Eastman Kodak Co. plans to sell off its personal imaging and document imaging businesses, which include consumer film and scanners, as part of its efforts to emerge from Chapter 11 bankruptcy while iconic photo company’s attempts to auction off its digital imaging patent portfolio remain ongoing, the company said Thursday.
Kodak is seeking to shift its primary focus to commercial, packaging and functional printing solutions and enterprise services, the company said.
The sale of the imaging businesses will work in concert with continued cost-reduction initiatives, curtailment of Kodak’s legacy liabilities, and the monetization of the company’s digital imaging patent portfolio to hasten the company’s exit from bankruptcy, Kodak said.
“The initiation of a process to sell the personalized imaging and document imaging businesses is an important step in our company’s reorganization to focus our business on the commercial markets and enable Kodak to accelerate its momentum toward emergence,” Kodak Chairman and Chief Executive Officer Antonio M. Perez said. “In addition, we continue our initiatives to reduce our cost structure and streamline our operating models in an effort to return the company to profitability.”
“We are reshaping Kodak,” he said. “We continue to rebalance our company toward commercial, packaging and functional printing – in which we have the broadest portfolio solutions – and enterprise services. These businesses have substantial long-term growth prospects worldwide and are core to the future of Kodak.”
Kodak’s efforts to auction off the digital imaging patents have yet to produce a sale. The auction is most notable for bringing together unlikely allies like Google Inc., Apple Inc., Samsung Electronics Co., LG Electronics Inc. and HTC Corp., as the Wall Street Journal reported Wednesday.
“In accordance with its prior announcement, the company is continuing discussions with parties with respect to the potential sale of its digital imaging patent portfolio,” Kodak said Thursday. “The company reiterates that it has made no decision to sell the portfolio and Kodak may, in consultation with creditors, retain the portfolio as an alternative source of recovery for creditors.”