From Bankruptcy to Billions : The Rebirth of Kodak
Why Corporate Turnaround Strategists Rewatch This 14-Minute Kodak Bankruptcy Resurrection Kodak dominated 90% camera market as $30B company, invented digital camera but "failed to capitalise on it"—filed bankruptcy 2013 with $6.75B liabilities. Eliminated $4.1B debt through asset sales including "$650 million to UK Kodak Pension Plan" dropping remaining $2.1B claim, but "still had over $2.5B left over, still lot of debt." The CEO listening strategy at 04:08 reveals cultural reset: Jeffrey Clarke appointed March 2014, "first priority spend time listening to Kodak's employees, customers, partners—wanted input from staff, to him they were experts." Combined with "fail fast mentality, we have gone from company with more than 100,000 employees to about 8,000 worldwide, bias for speed and agility that company with 100,000 people does not have." The commercial printing pivot at 08:27 exposes salvation product: February 2013 while "still navigating bankruptcy" unveiled Prosper 5000XLi—"massive industrial machine printing 650 feet per minute, up to 90 million A4 pages monthly, newly formulated nano-particulate pigment inks offering color range 30% wider than offset printing." June 2014 released Prosper 6000 printing "1000 feet per minute at less than $0.005 per color A4 page." The three-year profitability miracle at 12:07 quantifies turnaround: "after emerging from bankruptcy in 2013 still carrying debt, recorded first annual profit just three years later—that is unbelievable." 2023 revenue "$1.1 billion with net income $75 million, $49 million more than previous year." Strategic lesson: bankruptcy asset liquidation plus leadership cultural transformation plus pivot to adjacent B2B markets leveraging existing IP enables resurrection when consumer business collapses—speed and employee empowerment matter more than legacy bureaucracy. 5 Key Timestamps: [00:54] The $6.75B Bankruptcy Debt Elimination – "As they entered bankruptcy, Kodak's liabilities were $6.75 billion, bankruptcy process able to eliminate $4.1 billion of this debt but still had over $2.5 billion left over—that's still lot of debt." Attempted selling "digital patent portfolio, hoped this would provide $2 billion but actual figure was $527 million." Sold "imaging and document units to Kodak Pension Plan for $650 million, much less than claim but luckily agreed to drop remaining $2.1 billion"—many creditors "only received few cents back for every dollar, lot of people lost lot of money" [04:08] The Employee-First Leadership Reset – March 2014 new CEO Jeffrey Clarke appointed, "first action reflected deep respect for Kodak's employees—he listened to them, first priority spend time listening to Kodak's employees, customers, partners and other stakeholders, wanted input from staff, to him they were experts." Second priority "focus on innovation at pace—Kodak was massive but bloated, weighed down by bureaucracy and red tape, Clarke cut through this making easy for employees and managers to innovate and share ideas, brought fail fast mentality" [05:48] The 100K to 8K Employee Transformation – "We have gone from company that once had more than 100,000 employees to about 8,000 employees worldwide, as smaller company we have bias for speed and agility that company with 100,000 people often does not have and that is competitive advantage, have incredible patent portfolio and engine creating more." Restructured "to focus entirely on digital printing for large businesses, new market would be massive corporate clients that needed packaging and commercial printing of highest quality en masse" [08:27] The Prosper Series Industrial Pivot – February 2013 while "still navigating bankruptcy unveiled Prosper 5000XLi—massive industrial machine printing 650 feet per minute, up to 90 million A4 pages monthly, newly formulated nano-particulate pigment inks offering color range 30% wider than offset printing, fastest most accurate writing engine on market." June 2014 released "Prosper 6000 printing 1000 feet per minute, better drying capabilities, even wider colors at less than $0.005 per color A4 page"—2022 announced Prosper 7000 "world's fastest digital press printing at speeds up to 1,345 feet per minute, more than double 5000XLi" [12:07] The Three-Year Profitability Resurrection – "After emerging from bankruptcy in 2013 still carrying debt, recorded first annual profit just three years later—that is unbelievable, Kodak had turned things around spectacularly and quickly." 2023 results: "revenue of $1.1 billion with net income $75 million, $49 million more than previous year—very different company but some parts still same, deep focus on innovation research and core parts like printing still there, just needed right leadership and strategy"
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