Despite efforts to refocus the business, Kodak has failed to stem declining profitability
Eastman Kodak, the company that invented the hand-held camera, has filed for bankruptcy protection.
Kodak said in a statement that its business would keep going as normal for customers.The company has recently moved away from cameras to refocus on making printers in an attempt to stem falling profits.
The 132-year-old firm has struggled to keep up with competitors who were quicker to adapt to the digital era.
Announcing the move to seek bankruptcy protection, Antonio M. Perez, Kodak's chairman and chief executive, said: "The board of directors and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak."
The company said it had already arranged a $950m (£615m) credit facility from Citigroup.
Transformation Since becoming chief executive, Mr Perez has been responsible for steering Kodak away from its traditional market in cameras to focus on home and commercial printers.
However, the firm has failed to stop its plunging profitability.
The move to seek bankruptcy protection comes after Kodak failed to sell its catalogue of digital imaging patents last year. At the time, Kodak warned that it would run out of cash if it did not find a buyer by the end of 2011.
"Now we must complete the transformation by further addressing our cost structure and effectively monetising non-core IP assets," said Mr Perez on Thursday.
Kodak employs 19,000 workers whose jobs may be affected by the bankruptcy proceedings.
In its 1980s heyday the company employed 145,000 people in locations throughout the world.
Reorganisation Over the past few months, several directors have resigned from the board and at the start of 2012 Kodak announced that it was reorganising its business units into two rather than three, renaming them consumer and commercial.
The firm said at the time that it was pinning its hopes on its printer, software and packaging businesses with the aim of growing them to account for 25% of its income by 2013.
Although Kodak was one of the original inventors of digital photography, it failed to keep pace with developments in the market, and competition from the far east steadily eroded its share of the market.
