AP
Anna Cox
THE FUTURE of Kodak in SA has become uncertain since news of the international company’s financial woes hit the headlines last week.
The company has about 180 Kodak Express shops around the country, but owners and employees have not been told of how the international situation will affect their businesses and jobs, as the Kodak head office in New York is refusing to comment.
Questions put to Eastman Kodak Company, the head office in New York, on the future of the shops received the following response from spokesman Christopher Veronda: “Kodak, as a matter of long-standing policy, does not comment on market rumours or speculation. We are focusing on our objective of becoming a profitable, sustainable company.”
Kodak, as a company, no longer exists in SA. All the Express shops are individually owned.
Kodak has been a household brand and a pioneer of cameras for 130 years, first entering the South African market in 1913.
The company has reportedly been suffering financial losses and was forced to use its cash reserves last year, when its share price fell.
The company warned late last year that it would run out of money without selling its patents or securing new lending, which it has subsequently done, disposing of about 1 000 patents. It has been threatened with removal from the New York Stock Exchange unless it manages a financial recovery.
Kodak suspended operations in SA in 1986 for political reasons, but returned in 1994, quickly regaining its popularity.
It started off specialising in cheap cameras, film and processing, evolving into digital technology. It was also responsible for the introduction of photo booths and 24-hour photo-printing services.
A Kodak Express employee, who would not be named, said they had had no official notification of the closure of local shops or the effect the financial problems would have on shop owners, and they were waiting for an official statement from the head office.
Kodak products are carried in about 20 shops in Durban, and two Express stores are listed.
Dave Ellinger, of Whysalls at the Pavilion shopping centre, said he had not heard of the company’s financial troubles. “It doesn’t surprise me though, what with the name changes and the difficulty in getting stock… the quality you used to get in the yellow box of years ago is just not there. Kodak used to dominate the market, but not any more.”
A shop owner at the Phoenix Plaza, who asked not to be named, said Kodak sales people had stopped calling on the shop at least three years ago. “I stopped buying Kodak a year ago. It was difficult to get stock from them and their pricing was not competitive,” she said.
