Polaroid Corp., a name synonymous with instant photography for more than half a century, filed for bankruptcy protection with almost $1 billion in debt and a future eclipsed by new technologies.
The popularity of digital cameras has eroded sales of instant film, and Cambridge, Massachusetts-based Polaroid had pledged most of its assets to lenders as it explored selling all or parts of the company. Founded by college dropout Edwin Land in 1937, Polaroid stagnated as the 20th Century drew to a close.
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The company listed $1.81 billion in assets and $948.4 million in debts in Chapter 11 papers filed today in U.S. Bankruptcy Court in Delaware. Polaroid in August reported a second-quarter loss of $109.9 million, compared with net income of $26.6 million a year earlier. Sales fell 31 percent to $333.5 million.
“For Polaroid, bankruptcy isn’t a terrible thing at this point in time,” said Robert Renck, an analyst at R.L. Renck & Co. who owns Polaroid shares. “I think they can be an effective smaller organization.”
Polaroid has a commitment for a $50 million credit line from J.P. Morgan Chase & Co., subject to approval by a bankruptcy judge, the company said in a statement. Officials also said they plan more job cuts and will “accelerate and intensify” selling the company to help eliminate money-losing businesses.
(Bloomberg)
