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Xerox Faces Financial Strain: Debt Concerns and Stagnant Revenue Prompt Strategic Advisers’ Involvement
Xerox Holdings Corp., the once-dominant player in the printing and document management industry, is navigating a troubling financial landscape. Faced with stagnant revenue and concerns over cash burn, the company has turned to advisers to help chart a course through its current challenges, according to sources familiar with the matter. With the help of financial experts, Xerox is exploring options to stabilize its operations and address its substantial debt load.
In response to these mounting pressures, Xerox has enlisted the help of two prominent advisory firms to navigate its financial difficulties: Lazard Inc. and Kirkland & Ellis.
- Lazard Inc., a global financial advisory firm, is well-known for assisting companies in distressed situations. Xerox has reportedly turned to Lazard for guidance on restructuring its debt or finding alternative ways to alleviate financial pressure. Lazard’s expertise could help Xerox negotiate with creditors or explore options for refinancing its debt to ease short-term liquidity concerns.
- Kirkland & Ellis, one of the top law firms specializing in corporate restructuring, is providing legal support as Xerox contemplates its next moves. The firm is likely advising the company on its options for debt restructuring, as well as ensuring that Xerox complies with legal requirements throughout the process.
This strategic advisory team is working with Xerox to identify possible paths forward, whether that involves renegotiating debt terms, selling off assets, or taking steps to right-size the business. It’s clear that Xerox is taking a cautious and methodical approach in addressing its financial woes, but the lack of immediate clarity regarding the specifics of the company’s plan is a sign that negotiations are still ongoing.
Revenue and Cash Flow
Once a leader in printing and photocopying, Xerox is now battling stagnant or declining revenue. Efforts to diversify into digital services haven’t produced steady growth, leading to weak cash flow and ongoing cash burn. With limited income and rising expenses, the company faces mounting liquidity risks. As of June 30, 2025, Xerox carried about $3.9 billion in debt, including loans and lease obligations. With revenue flat and cash reserves shrinking, its ability to meet these obligations is in doubt. Concerned lenders have reportedly hired Gibson Dunn & Crutcher for legal advice, signaling growing unease over the company’s financial stability.Silence and Uncertainty
Xerox and its advisers have declined to comment, likely to avoid alarming investors while internal discussions continue. The quiet suggests sensitive negotiations, possibly involving debt restructuring or other major financial moves. Xerox’s future depends on its ability to stabilize cash flow and manage debt. The company is exploring options with financial advisers, but outcomes remain uncertain. Without a successful turnaround, Xerox could face deeper cuts, asset sales, or a significant restructuring. Once an icon of innovation, Xerox now stands at a critical juncture. Whether it can restructure debt, revive growth, and adapt to a digital economy—or be forced into painful downsizing—will become clear in the months ahead.
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