One of the best-known photography companies in the world has filed for bankruptcy. According to industry analysts, Eastman Kodak Co. made the decision to file for Chapter 11 bankruptcy after several years of falling profits, layoffs, and decreases in market value.

According to the Chapter 11 bankruptcy filing, Kodak currently has approximately $6.75 billion in debt and $5.1 billion in assets, making it necessary for the company to seek bankruptcy protection. The company's market value has shrunk to less than $100 million, a significant drop from just 15 years ago when it was valued at $31 billion. At that time, its shares were selling for up to $94. Currently, the share price is around 30 cents.

In addition, the company has laid off tens of thousands of employees in recent years. It currently employs about 17,000 people in Nevada and throughout the country and the world, down from nearly 64,000 employees less than a decade ago.

Industry analysts say that it was Kodak's failure to embrace digital technology in a timely manner which began its quick descent to bankruptcy. Ironically, Kodak invented the digital camera, but the company's reluctance to alter its business model toward the new technologies significantly hurt its profits.

Kodak representatives say the company plans to complete its U.S. restructuring by 2013. One key asset of the reorganization plan will likely include the sale of some of Kodak's 1,100 digital patents. This could be a significant money-maker for the company, and will likely play a large part in Kodak's future.

Source: Reuters, "Photography pioneer Kodak files for bankruptcy," Liana B. Baker and Jonathan Stempel, Jan. 19, 2012