I’d like to take this opportunity to talk to you briefly about the recent stories you may have seen in the various
media channels over the past couple of days regarding Kodak and reassure you that as far as we are concerned it is very much ‘business as usual’.
As with all such stories surrounding high profile companies there has been no shortage of individuals willing to
give their view on what is happening. Unfortunately, there has been much mis-representation of the actual facts
surrounding Kodak’s voluntary filing for Chapter 11 protection in the U.S.
The first and most important point to make is that the Chapter 11 protection has been applied for in the U.S. only and this does not directly affect the UK and European operations of the company. For those who do not fully
understand what Chapter 11 entails I shall try to outline in brief what this actually means.
In the U.S., Chapter 11 offers protection to companies who are seeking to re-structure their business in the face of difficult trading conditions due to a number of factors. This is not a bankruptcy notice. Unfortunately this is a word which is being over used in most of the media and has led to many people making inaccurate assumptions about the state of the company.
Kodak is in the process of re-structuring and re-organising its business in the U.S. and Chapter 11 allows them to do this from a position of relative strength. This is explained in more detail in the official statement from Antonio M. Perez, Chairman and Chief Executive Officer of Kodak.
I must re-iterate that the UK is not affected by Kodak entering Chapter 11 in the U.S. and there should be no additional stock issues outside those which occasionally occur in a worldwide business such as Kodak so please continue to order your Kodak products in normal quantities and frequency as this will help to maintain the stability of supply.
It is also important that we as distributors of Kodak in the UK and you as customers and re-sellers of Kodak products and representatives of the Kodak brand continue to present a positive view of the company and maintain confi dence in the Kodak name, as this will be to the benefit of all of us.
From our position as one of Kodak’s key European distributors, we understand that there are many profitable
parts of the Kodak business and the company will use the protection of Chapter 11 to concentrate on and grow
these profitable areas of the business. We are confident that Kodak will emerge as a stronger and leaner company and continue to be one of the leading names in the world of photography, imaging and print for the foreseeable future.
As businesses connected with Kodak, we should all take heart from the generally positive comments and messages of support from the public there has been on many of the news websites and use this clear affection that the photographic community has for the Kodak brand to our benefit, maintain confidence in your long term Kodak plans and continue to talk about Kodak in a positive light.
As mentioned previously, please take a moment to read the offi cial statement from Antonio Perez and if
you require any additional information please do not hesitate to contact me or any of my team. Alternatively, there is an official website which talks in more detail about Kodak’s reorganization which can be found atwww.kodaktransforms.com.