Kodak latest in series of bankruptcies
A sign is lit at the Kodak booth at the 2012 International Consumer Electronics Show at the Las Vegas Convention Center January 10, 2012 in Las Vegas, Nevada. Kodak is just the latest company to declare bankruptcy in recent weeks.
Jeremy Hobson: Eastman Kodak filed for Chapter 11 bankruptcy protection this morning. It's just the latest high profile company to go bankrupt in recent weeks, following American Airlines and Hostess Brands. So what's going on?
Here's Marketplace's Amy Scott.
Amy Scott: All of these companies faced its own predicament in a changing world. Kodak has been struggling to reinvent itself in the age of digital photography.
David Skeel teaches bankruptcy law at the University of Pennsylvania. He says these companies share one thing in common: the economy.
David Skeel: In a time of austerity, the companies that are most vulnerable are the one that are most likely to fall. And I think each one of those companies had longstanding problems and the difficulties brought by the recession I think brought them to a head.
Now, they'll attempting to restructure and find new revenue in a tough environment. The 132-year-old Kodak hopes to raise cash by selling photo patents and to reinvent itself as a printer and ink company. Since 2004, it's managed just one profitable year.
I'm Amy Scott for Marketplace.