Kodak to enter into agreement for proposed sale of Gallery Photo Services site to Shutterfly

Kodak will give customers who do not want their photos transferred to Shutterfly the opportunity to opt out of the transition process. Those customers could then retrieve their images through free downloads or by purchasing DVDs from Kodak Gallery.

Jotwani, President Consumer Business and Chief Marketing Officer, points out that Kodak is focusing its consumer business on retail and destination photo solutions as well as home printing products. “Those businesses have attractive and growing sales of consumables,” he adds. “We are by far the leader in retail print solutions, with an installed base that has grown now to 105,000 picture kiosks, while our consumer inkjet printers offer high-quality, affordable ink.”

Under the terms of the agreement, Kodak will seek U.S. Bankruptcy Court approval of sale and auction procedures by late March. Under these proposed procedures, other potential buyers may submit alternative bids to Kodak and seek to establish the superiority of their alternative bid. Kodak is targeting completion of the sale process this spring.