Polaroid Corporation

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Polaroid logo

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 continued to be the company's flagship product line until the February 2008 decision to cease all production in favor of digital photography products[1]. The company's original dominant market was in polarized sunglasses, an outgrowth of Land's self-guided research in polarization after leaving Harvard University after his freshman year (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.

Polaroid developed an instant movie system, Polavision, based on the Dufaycolor process. The product arrived on the market when videotape based systems were rapidly gaining popularity. As a result, Polavision was unsuccessful and most of the manufactured product was sold off as a job lot at immense cost to the company.

The company also was one of the early manufacturers of digital cameras, with the PDC-2000 in 1996[2], however they failed to capture a large marketshare in that segment.

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".[3] It stopped making Polaroid cameras in 2007 and will stop selling Polaroid film after 2009 [4], to the consternation of some users. [5]

The renamed "old" Polaroid now exists solely as an administrative shell.[6] Its bankruptcy was widely believed to be the result of the failure of its senior management to anticipate the effect of digital cameras on its film business.

Contents

[edit] History

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[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[7] 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).[8][9] However, this new company operates using the name of its bankrupt predecessor, Polaroid Corporation.[3]

As part of the settlement, the original Polaroid Corporation changed its name to Primary PDC, Inc.[8][6] 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[8] (including bondholders.[10]) As of late 2006, Primary PDC remains in existence under Chapter 11 protection, but conducts no commercial business and has no employees.[9]

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.[10]

[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, Arps, Slate, Meagher & 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.[11]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. [12]

[edit] Corporate sponsorship of motorsports

In the 1990s, Polaroid was involved in the corporate sponsorship of NASCAR racing. For several years, Polaroid was the principal sponsor of NASCAR's 125 mile Featherlite Modified race at Watkins Glen and it was called the "Polaroid 125"[3]. The Polaroid name was also used in sponsorship in the NASCAR Busch series. In 1992, Polaroid was the principal sponsor of female NASCAR driver Shawna Robinson's #25 Oldsmobile in the Busch Series. They continued as her principal sponsor when she moved to the other car numbers in 1993 and 1994[4].

More recently, the Polaroid name has been associated with the NOPI drift series. Polaroid is currently the principal sponsor of the 350Z driven by Nick Bollea[5], who placed third in Pittsburgh and tenth in Denver at NOPI events in the 2007 season.[6]. Polaroid has chosen not to renew their sponsorship of Bollea for the 2008 season.[7] No official reason has been given, but this decision was made in the wake of a serious accident and allegations of illegal street racing by Bollea.

[edit] Polaroid Film

On February 8, 2008, Polaroid (under the control of Thomas J Petters of Petters Group Worldwide) announced that the company has decided to gradually cease production and withdraw from instant film products completely in early 2009.[8]

[edit] See also

[edit] References

  1. ^ Jewell, Mark. "After 60 years, Polaroid quits instant film business", Associated Press, 2008-02-08. Retrieved on 2008-02-16. 
  2. ^ Polaroid PDC-2000 Digital Camera
  3. ^ a b "Polaroid and One Equity Partners Complete Asset Acquisition", New Polaroid Corporation. Press release dated 2002-07-31, retrieved 2006-12-01.
  4. ^ Polaroid Abandons Instant Photography [1]
  5. ^ Industries Frantic To Find Polaroid Instant Film [2]
  6. ^ a b Front page, Primary PDC website. Retrieved 2006-11-30.
  7. ^ "Shareholders", Primary PDC website. Retrieved 2006-11-30.
  8. ^ 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).
  9. ^ a b FAQ, Primary PDC, Inc. Retrieved 2006-11-30.
  10. ^ 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.
  11. ^ Press release for camera licensing agreement (PDF), World Wide Licenses Ltd. Article dated 2002-09-24, retrieved 2006-12-01.
  12. ^ RRPC Newsletter, Issue 15, September 2005.

[edit] External links