Kodak CEO Jeff Clarke has stepped down as head of the company and been replaced by chairman Jim Continenza – “effective immediately.” The surprise move was announced in a statement by the board of directors in New York:
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| Jeff Clarke, former CEO Kodak |
The Board of Directors of Eastman Kodak Company announced the appointment of Jim Continenza as the company's new executive chairman, effective immediately. Continenza, who has served as chairman of Kodak's board of directors since 2013, will continue as board chairman while also assuming the responsibilities of Jeffrey J. Clarke, who is stepping down after nearly five years as chief executive officer.
Clarke, 57, joined Kodak in 2014, a few months after it emerged from chapter 11 bankruptcy.
"It was a privilege to lead Kodak during a time of transition and am pleased to leave the company in a position of strength after the execution of the agreement to sell our Flexographic Packaging Division,” he said.
Kodak last year agreed to sell its Flexographic Packaging Division to private equity firm Montagu Private Equity in a deal worth up to $US390 million.
“The Board and I mutually agreed that now is the time to hand the reins to new leadership, and I am confident that Jim is the right leader to take the Company to the next phase of its transformation,” Clark said, in the statement released by Kodak. Clarke will be available to Continenza and the board to ensure a smooth transition.
In his role as chairman, Continenza, 56, has led the company's efforts to improve its capital structure, execute M&A transactions and drive investment in growth markets. He said he was thrilled to build upon the board's strategic vision.
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“Importantly, I look forward to helping Kodak build long-term value for shareholders as we continue to deleverage our balance sheet, increase operational efficiencies, and maximize the potential of our key growth drivers. I'd like to thank Jeff for his strong leadership and I'm optimistic about the future of Kodak given our team, our assets and the opportunities ahead."
Kodak said its leadership team and board would focus on the several strategic initiatives, including: executing on the sale of the Flexographic Packaging Division (FPD), a business that has demonstrated high growth; completing efficiency actions expected to result in $40 million of annualized savings and improved liquidity; driving Kodak's key growth areas of SONORA Process-Free Plates, enterprise inkjet, workflow software and brand licensing, while continuing to maximize value in print systems, film and advanced materials; and commitment to growth in Motion Picture film, having seen 32 Oscar nominations for films shot on film in 2019.
Continenza currently serves as chairman of the board of Merrill Corporation, and Sorenson Communications. He also serves on the board of directors of Nextel International and is the founder, chairman and CEO of Vivial Inc., a privately held marketing technology and communications company.
Clarke's seat on the board will be filled by Phillippe D. Katz, a partner at investment firm United Equities Commodities Company.
Kodak provides hardware, software, consumables and services to customers in graphic arts, commercial print, publishing, packaging, entertainment and commercial films, and consumer products markets. It first sold materials designed for the printing industry in 1912, and during the 1950’s and 60’s helped fuel the colour revolution in books and magazines.
The company had sales of $US1.5bn in 2017.
