Sino Promise, the maker of film paper and Kodak photochemicals, may be in financial trouble as it has hiked prices and is demanding full upfront payment from labs, following last year’s warning that it was suffering from a supply shortage.
Sino Promise acquired Kodak’s film and photochemical paper business from Kodak Alaris in July 2020. After Kodak went bankrupt in 2012, a $2.8 billion UK Kodak Pension Plan (KPP) claim was resolved by the creation of Kodak Alaris, which acquired Kodak’s custom business. imaging and document imaging companies. After the acquisition, Sino Promise called itself “the world’s largest distributor of Kodak Alaris” and manufactures Kodak-branded paper and chemicals at its Chinese factories.
But in September 2021, Sino Promise warned its buyers that it faced “critical supply constraints” in the US market from the fourth quarter, Interior Imaging reported. According to a major US photo consumables distributor, Sino Promise said it will not be able to supply the market for the foreseeable future.
The problem seems to have gotten worse. In a new report, Interior Imaging says U.S. buyers have been notified that in addition to a recent price increase of up to 30%, Sino Promise now requires all purchases to be paid in full upfront (removing normal terms of trade ) and the shipping costs are now the buyer’s responsibility.
US-based Sino Promise Incorporated is listed as “delinquent,” meaning it has failed to meet what is legally required, such as not making the required payment. This designation is further proof that something is wrong with the company. Interior Imaging notes that the next step is “administrative dissolution” by the State of Colorado, where Sino Promise is registered.
This problem does not appear to be isolated to the United States. Another source says Interior Imaging that a Sino Promise Kodak paper and photochemicals sales representative asked Australian retail customers to place large advance orders with full payment in advance to help Sino Promise overcome its financial difficulties.
“We have been literally inundated with concerned phone calls from photo specialty retailers and professional labs looking for locally stocked and fully supported alternative products to fill the gaps created by cash flow and cost issues. supply of Sino Promise/Kodak products,” Stuart Holmes, managing director of Independent Photographic Supplies (iPhoto), says Interior Imaging.
Despite the resurgence of movie theater pop culture, many companies that supply film, paper, or photochemicals are struggling, especially when it comes to maintaining a healthy supply chain during the COVID-19 pandemic. 19. In addition to problems with Sino Promise and its Kodak paper and photochemicals, Fujifilm has diverted resources to its burgeoning medical division and is reportedly preparing to raise prices dramatically. In January, it was discovered that Fujifilm’s release of its new Fujicolor 200 was actually just a repackage of the Kodak Gold 200.