133-year old Kodak film company might close down
Listen to the story (American accent)
The Eastman Kodak company has been famous for photography for over 130 years. It recently announced that it might not be able to continue its business.
In a recent report, the company said it does not have the money to pay its upcoming debts of around $500 million. Many people think the company cannot continue operating because of the debt.
To find or save money, Kodak plans to stop making payments for its employee retirement plan.
The company's CEO, Jim Continenza, said that Kodak is trying hard despite a difficult business environment. A company spokesperson also says that they can pay some debts and make changes.
However, after the news, Kodak's stock price decreased more than 25%.
The company began in 1879. George Eastman created a machine for photography plates and later sold the first Kodak camera in 1888 for $25. At that time, photography was difficult, so Eastman wanted to make it easy for everyone.
For many years, Kodak was very successful. In the 1970s, it sold most of the film and cameras in the United States.
Kodak invented the first digital camera in 1975, but the company did not make enough money from this new technology. In 2012, Kodak went bankrupt.
In 2020, the company had some hope. The US government wanted Kodak to start making pharmaceutical products. That made Kodak's stock price increase very quickly.
Even with recent financial problems, Kodak still plans to grow the pharmaceutical part of its business. It also continues to sell films and chemicals, and licenses its brand for other products.
Vocabulary34 words
- Famous
- Many people know it; Well-known or admired by many people
- Photography
- The art of taking pictures with a camera
- Recently
- Not long ago
- Announce
- share information openly; to tell the public; to make a statement; to report; to tell everyone
- Report
- a written description of an event; story; article; the results of a study or project
- Upcoming
- happening soon
- Debt
- Money that you owe to someone; money that you have to pay back
- Million
- 1,000,000 = one-million
- Operate
- to manage; run; use; to control or use a machine; conduct
- Plan
- want; aim; to intend to do something
- Make a payment
- To give/pay money that is owed.
- Payment
- the act of paying or being paid money; installment; premium
- Employee
- a person who is paid to work for a company or organization
- Retirement plan
- A way to save money for when a person stops working
- CEO (Chief Executive officer)
- the top person in a large company; president; boss
- Despite
- In spite of; or regardless of; even though; although
- Environment
- the atmosphere or condition; surroundings; mood
- Spokesperson
- a person who speaks professionally/officially for a company or group
- Stock
- the money a company has from selling shares (parts of the company) on the stock market
- At that time
- In the past; during the time that was mentioned
- Successful
- Achieving what you wanted; having the effect or result you intended; to do correctly or finish something you wanted to do
- Film
- A thin plastic strip used to take pictures with old cameras
- Invent
- to make something new that no one else has made before
- Digital
- using numbers and codes in a system or computer to make things happen; Using computers or technology to store or process information
- Bankrupt
- When a person or company cannot pay their debts; when a company or person doesn’t have enough money
- Hope
- something good that you want to happen in the future; a confident feeling about what will happen in the future; wish
- Government
- the group of people who have the authority to make and enforce laws and manage a country or region; the people/group that manage and operate a country
- Financial
- related to finance, money or banking
- Pharmaceutical
- Relating to drugs/medicines; 💊
- Product
- something that is made to be sold or used by people; things you buy in a shop
- Part
- a piece of something; a section of a whole thing; not the whole thing
- Chemical
- any basic substance that is used in or produced by a reaction involving changes to atoms or molecules; stuff that things are made of; synthetic;
- License
- To give someone permission to use something you own; to let another company use your company’s name or content
- Brand
- the name of a company and its image; one product with a specific name made by one company, e.g., Sprite is one of Coca-Cola’s brands
Quiz
Answer key
1. It decreased. 2. 1888 3. True
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
The Eastman Kodak _____ has been famous for photography for over _____ years. It recently announced that it might not be able to _____ its business.
In a recent report, the company _____ it does not have the money to pay its upcoming debts of _____ $500 million. Many people think the company _____ continue operating because of the debt.
_____ find or save money, Kodak plans to stop making payments for _____ employee retirement plan.
The _____ CEO, Jim Continenza, said that Kodak is trying _____ despite a difficult business environment. A company _____ also says that they can pay some debts and make _____ .
However, after _____ news, Kodak's stock price decreased more than _____ %.
The company began in 1879. George Eastman _____ a machine for photography plates and later sold the first Kodak camera in _____ for $25. At that time, photography was difficult, so Eastman _____ to make it easy for everyone.
_____ many years, Kodak was very successful. In the _____ , it sold most of the film and cameras in the United States.
Kodak _____ the first digital camera in 1975, but the company did not make _____ money from this new technology. In _____ , Kodak went bankrupt.
In 2020, the company had _____ hope. The US government wanted Kodak to start _____ pharmaceutical products. That made Kodak's stock _____ increase very quickly.
Even with _____ financial problems, Kodak still plans to grow the pharmaceutical _____ of its business. It also continues to sell films and _____ , and licenses its brand for other _____ .
Discussion questions
- Why do you think a company with a long history like Kodak can still fail today?
- Do you think it is fair for a company to stop payments for employees' retirement plan to save money? Why or why not?
- Do you think a company's past success is a guarantee of its future success? Explain your opinion.
- What can a company do when its main product is not popular anymore?
- How important do you think a company's brand name is? Do you think the name "Kodak" is still important today?
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