Kodak Files Bankruptcy, Chicago Lawyers Fault Advancing Technology

Well known camera and film company, Kodak Eastman Co. is in bankruptcy. Their fate is similar to companies like Blockbuster and Borders who fell into bankruptcy when they were unable to compete with advancing technology.

Borders could not make a strong presence with their e-book technology and with paper books taking a hit the company filed for bankruptcy. Blockbuster went into bankruptcy after Netflix became a household name. Blockbuster tried to launch a similar service but it was not enough to save the company from bankruptcy.

For Kodak it was a decrease in the demand for film and the inability to compete in the digital camera market that eventually sent them into bankruptcy. According to an article on NewYorkTimes.com, Kodak found themselves $6.8 billion in debt which is $1.7 billion more then the company has in assets. 

Chicago bankruptcy lawyers commend Kodak's plan to restructure their business to focus on things like desktop printers, online and retail printing and camera accessories including the film they built their name on.

With the recent economic downturn many businesses have been struggling financially. Chicago brand, Hostess is currently going through bankruptcy. Their difficulty came because healthy eating habits have decreased the market for their well known sweets like Twinkies.

When the demand for a product changes over time it is imperative that the company adjust their strategy to meet the new demands of their consumers. Chicago bankruptcy lawyers urge those considering bankruptcy to evaluate their product and its marketability. If a business or individual intends to restructure their finances through chapter 11 or chapter 13 Chicago the most important thing is to insure there is enough money coming in and enough product demand or job stability to get finances back up.

Kodak's plan to restructure will allow them to continue business as usual while they are going through the bankruptcy process. They are also working to sell off some of their assets to get some cash. Kodak's bankruptcy plan also relies on $950 million in financing that is being provided by Citigroup.

The restructuring plan that Kodak has put together is strong. Chicago bankruptcy lawyers anticipate that if all goes well they will be able to restructure and stay in business for years to come.

Chang and Carlin
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