Polaroid Files Ch. 11. Again.
By Greg Scoblete -- TWICE, 12/19/2008
Minnetonka, Minn. – Polaroid said yesterday that it had filed Chapter 11, the second time in seven years that the iconic imaging brand has sought such protection.
This time, however, Polaroid was not eclipsed by new technology but crunched by the scandal engulfing its parent company, the Petters Group.
According to a statement released by the company, the “financial restructuring process and the filing will not impact day-to-day operations for employees, customers, retailers and suppliers.”
Polaroid said the wide-ranging fraud case aimed at Thomas Petters and associates at its parent company “have compromised the financial condition of Polaroid and other entities owned by Petters Group.”
None of the Polaroid leadership is implicated in the Petters scandal. “Polaroid has entered bankruptcy with ample cash reserves sufficient to finance the Company’s reorganization under Chapter 11. The Company has not sought, nor does it expect to seek additional debtor-in-possession financing,” the statement continued.
“Our operations are strong and during this process Polaroid will ship products to our retail partners, work with our suppliers and contract manufacturers to fulfill retailer demand, honor customer warranties and employees are expected to receive their regular paychecks without interruption,” said Mary L. Jeffries, Polaroid CEO. "We expect to continue our operations as normal during the reorganization and are planning for new product launches in 2
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