Kodak May Sell Chain of Photo Stores

Eastman Kodak Co. is considering selling the Fox Photo Inc. chain it acquired 18 months ago as it struggles to cut costs amid competition from Fuji Photo Film Co. The world’s largest photography company said it hired Lehman Bros. to explore options for the 450-unit nationwide chain of photography stores, as part of a review to get rid of nonstrategic businesses. Kodak may wind up losing money on Fox, which has revenues of about $160 million annually, analysts said. The Rochester, N.Y.-based company paid $110 million in cash and debt for Fox in October 1996. A Kodak spokesman said the company has “clearly benefited” from its ownership of Fox. “The Fox stores proved to be an extremely valuable in-market laboratory, allowing us to work directly with consumers as we tested, refined and implemented a variety of merchandise offerings,” he said. On the NYSE, Kodak shares fell $1.13 to close at $70.