Polaroid Files for Bankruptcy a Second Time
Photography icon blames fraud at parent company
By Wesley Oliver,  Newser Staff
Posted Dec 19, 2008 12:08 PM CST
Designer Jane McMillan talks to a model backstage at the Mac Millan 2006 fashion show during Olympus Fashion Week at Marquee September 13, 2005, in New York City.   (Getty Images)
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(Newser) – Polaroid is blaming fraud at its parent company for its second bankruptcy filing in 7 years, Bloomberg reports. The instant photography pioneer says it has “ample cash reserves” and doesn’t expect to seek additional financing under Chapter 11 reorganization. But the Petters Group, which acquired the 71-year-old firm in 2005, has unsecured claims against Polaroid for $213.5 million.

Last October, authorities arrested Thomas Petters on charges of mail fraud, wire fraud, and money laundering. Another Petters company, Sun Country Airlines, has also sought bankruptcy protection. Polaroid in recent years disbanded its instant photography business in favor of DVD players, TVs, and other electronics. It plans to exit the film business entirely to focus on digital photography.