Kodak will take its online photo hosting service offline July 2nd after a federal judge approved the sale of that business to Shutterfly — seemingly the only interested buyer — for $23.8 million. The company notified all Kodak Gallery users of the shutdown date in an email today, and also requested that customers who do not want their photos moved over to Shutterfly's servers provide direct notice to Kodak no later than May 28th.

As for everyone else, they can expect an email from Shutterfly at some point in June detailing the transition process. Kodak warns that photos will no longer be accessible via Kodak Gallery after an account is linked with Shutterfly, so we'd recommend ensuring those precious images are backed up elsewhere just in case something goes awry. The beleaguered photo giant filed for bankruptcy in January, and the outlook didn't improve much with loss-laden Q1 financial results announced last month. Kodak expects US restructuring to be completed sometime in 2013, and this move is clearly intended to generate some cash toward that effort.