TORONTO — The Canadian Press Published on Friday, Apr. 17, 2009 3:42PM EDT Last updated on Friday, May. 15, 2009 2:06PM EDT
Faded instant-photo company Polaroid Corp. has been acquired out of bankruptcy for $87.6-million (U.S.) by an investor group including Knight's Bridge Capital Partners, owned by Counsel Corp. of Toronto, and Hilco Consumer Capital LP, also Toronto-based.
The partnership, in which Counsel Corp. said it is advancing more than 30 per cent of the funding, also includes Gordon Brothers Brands LLC of Boston.
“The Polaroid name is one of the most iconic brand names and has almost 100 per cent global awareness,” Kenny Finkelstein, chief executive officer of Knight's Bridge, stated in announcing the acquisition Friday.
“This is a tremendous opportunity to monetize the strength of that brand name by building a global licensing organization,” Mr. Finkelstein said.
“Polaroid already has a very interesting portfolio of innovative and patented technologies that represent both an initial revenue stream and a platform for other new products and product categories.”
The sale, approved by a U.S. federal bankruptcy judge in Minnesota, includes the Polaroid brand, intellectual property, inventory and other assets.
Hilco and Gordon Brothers have been trolling among well-known but distressed companies, and recently acquired The Sharper Image, Linens 'N Things and Bombay.
Polaroid was founded in 1937 by Edwin Land, making polarized sunglasses and becoming famous for its self-developing film cameras, produced between 1948 and 2008, when it belatedly moved to digital photography products.
It underwent a bankruptcy reorganization in 2001, and the reconstituted company filed for Chapter 11 bankruptcy protection last December.
“The Polaroid brand has immense global appeal that translates into almost all categories,” stated Jamie Salter, CEO of Hilco Consumer Capital, a private equity firm focused on investments under $250-million.
“This is a terrific opportunity to unlock Polaroid's brand value and transform its multi-channel platform of diverse and unique consumer products using leading technologies and trend-setting innovations.”
Its current products include an inkless printing device and the PoGo instant mobile printer.
The new owners plan a “full-scale global licensing and marketing strategy for wholesale, direct-to-retail and e-commerce businesses.”
Join the Discussion: