Polaroid Corporation

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Polaroid Corporation was founded in 1937 by Edwin H. Land. It is most famous for its instant film cameras, which reached the market in 1948, and continue to be the company's flagship product line. The company's original dominant market was in polarized sunglasses, an outgrowth of Land's self-guided research in polarization after leaving Harvard University at the age of 17 (he later returned to Harvard to continue his research).

After Polaroid defeated Kodak in a patent battle, Kodak left the instant camera business on January 9, 1986.[1]

Polaroid managed to develop an instant movie system, Polavision, based on the Dufaycolor process. The product was too late to market and had to compete with the upcoming video based systems. As a result most of the manufactured product was sold off as a job lot at immense cost to the company.

The company entered the digital photography market late in the game, and as a result has neither a significant market share nor significant innovation in this area.

On October 11, 2001, Polaroid Corporation filed for Chapter 11 bankruptcy protection. Almost all the company's assets (including the "Polaroid" name itself) were sold to a subsidiary of Bank One. They went on to form a new company, which also operates under the name "Polaroid Corporation".[2] It continues to sell Polaroid-branded products and has extensively licensed the name to other companies.

The renamed "old" Polaroid now exists solely as an administrative shell.[3] Its bankruptcy was widely believed to be the result of the failure of its senior management to see the effect of digital cameras on its film business.

Contents

[edit] Bankruptcy and the "new" Polaroid Corporation

[edit] "Chapter 11" controversy

The original Polaroid Corporation filed for federal bankruptcy protection on October 11, 2001. The outcome was that within ten months, most of the business (including the "Polaroid" name itself[4] and non-bankrupt foreign subsidiaries) had been sold to Bank One's One Equity Partners (OEP). OEP Imaging Corporation then changed its name to Polaroid Holding Company (PHC).[5][6] However, this new company operates using the name of its bankrupt predecessor, Polaroid Corporation.[2]

As part of the settlement, the original Polaroid Corporation changed its name to Primary PDC, Inc.[5][3] Having sold its assets, it was now effectively nothing more than an administrative shell. Primary PDC received approximately 35 percent of the "new" Polaroid, which was to be distributed to its unsecured creditors[5] (including bondholders.[7]) As of late 2006, Primary PDC remains in existence under Chapter 11 protection, but conducts no commercial business and has no employees.[6]

Significant criticism surrounded this "takeover" because the process left executives of the company with large bonuses, while stockholders, as well as current and retired employees, were left with nothing.[7]

[edit] Use of Polaroid brand following bankruptcy

Since the bankruptcy, the Polaroid brand has been licensed for use on other products with the assistance of Skadden Arrps Slate Meager & Flom. In September 2002, World Wide Licenses, a subsidiary of The Character Group plc, was granted the exclusive rights for three years to manufacture and sell digital cameras under the Polaroid brand for distribution internationally.[8]Polaroid branded LCDs and plasma televisions and portable DVD players have also appeared on the market.

On April 27, 2005, Petters Group Worldwide announced its acquisition of PHC. Petters has in the past bought up failed companies with well-known names for the value of those names. The same year, Flextronics purchased Polaroid's manufacturing operations and the decision was made to send most of the manufacturing to China. [9] Polaroid continues to market many types of instant film and cameras for the time being, although new research and development on instant photography may be seen to be at a standstill, with no new products planned and many current products being phased out of production.[citation needed]

[edit] See also

[edit] References

  1. ^ "Kodak to stop selling traditional cameras", MSNBC & Reuters
  2. ^ a b "Polaroid and One Equity Partners Complete Asset Acquisition", New Polaroid Corporation. Press release dated 2002-07-31, retrieved 2006-12-01.
  3. ^ a b Front page, Primary PDC website. Retrieved 2006-11-30.
  4. ^ "Shareholders", Primary PDC website. Retrieved 2006-11-30.
  5. ^ a b c Frieswick, Kris, "What's wrong with this picture?", cfo.com. Article dated 2003-01-01, retrieved 2006-11-30. (p1: Sale of business/assets, controversy. p4: Renamed as Primary PDC, distribution to unsecured creditors).
  6. ^ a b FAQ, Primary PDC, Inc. Retrieved 2006-11-30.
  7. ^ a b O'Neill, Jerry"The New Polaroid: After Chapter 11", "From the October 2002 Issue of Imaging Business" via imaginginfo.com. Article updated 2006-02-08, retrieved 2006-12-01.
  8. ^ Press release for camera licensing agreement (PDF), World Wide Licenses Ltd. Article dated 2002-09-24, retrieved 2006-12-01.
  9. ^ RRPC Newsletter, Issue 15, September 2005.

[edit] External links

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