Ailing Kodak Files For Bankruptcy Protection

The iconic photography brand Kodak (NYSE: EK - news) has applied for bankruptcy protection in New York (Frankfurt: A0DKRK - news) .

Eastman Kodak (Xetra: 850937 - news) , the company's full title, has struggled to adapt to the rise of digital cameras, which obliterated much of its traditional business.

The 130-year-old firm had been trying to sell the 1,100 digital imaging patents it licenses for use in mobile and other devices, as well as printers.

Kodak applied to a New York court for Chapter 11 bankruptcy protection, which protects it from its creditors while the company restructures.

It said that it had obtained a £615m loan from Citigroup (NYSE: C - news) which will allow it to continue trading.

In a statement, Kodak's Chairman and Chief Executive, Antonio M. Perez described the move as "a necessary step and the right thing to do for the future of Kodak."

Speaking on Jeff Randall Live, Philip Cullimore, managing director of Kodak Europe, Middle East and Africa said: "This is certainly big news, but Kodak is taking some action to ensure it has a strong foundation for the future."

He added: "From a European point of view, we are not affected and business continues as usual."

Mr Perez said that the company expects to continue to pay employee wages and benefits and that its international operations will not be affected by the bankruptcy move.

Mr Perez said Kodak had moved away from its traditional film operations, "closing 13 manufacturing plants and 130 processing labs, and reducing our workforce by 47,000 since 2003".

It had reorganised its business to focus on printers but that failed to restore profitability.

Mr Cullimore said: "We have gone from being a company which produces film, to having other outputs like printing and products in the home."

The market value of the company has fallen to £100m from more than £20bn 15 years ago.

A decade ago, the firm employed 70,000 people but the payroll has shrunk to below 19,000.

Mr Cullimore said: "The reality is that the way people are consuming photography is changing, and Kodak is remaining right in the centre of it, to make sure people can share their memories in a way they have always liked to."