Editing Polaroid Corporation (section)

=== Bankruptcy (2001) ===
The original Polaroid Corporation filed for federal [[Chapter 11, Title 11, United States Code|Chapter 11]] [[bankruptcy]] protection on October 11, 2001. The outcome was that within ten months, most of the business (including the "Polaroid" name itself<ref name="pdcshare" /> 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''').<ref name="cfocom">Frieswick, Kris, [http://www.cfo.com/article.cfm/3007726/1/c_3046585 "What's wrong with this picture?"] {{webarchive |url=https://web.archive.org/web/20130721213718/http://www.cfo.com/article.cfm/3007726/1/c_3046585 |date=July 21, 2013 }}, 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).</ref><ref name="pdcfaq" /> However, this new company operated using the name of its bankrupt predecessor, Polaroid Corporation.<ref name="polapr01">[http://www.polaroid.com/global/printer_friendly.jsp?PRODUCT%3C%3Eprd_id=845524441760524&FOLDER%3C%3Efolder_id=2534374302023841&bmUID=1164973407121&bmLocale=en_US "Polaroid and One Equity Partners Complete Asset Acquisition"] {{webarchive|url=https://web.archive.org/web/20130531235712/http://www.polaroid.com/global/printer_friendly.jsp?PRODUCT%3C%3Eprd_id=845524441760524&FOLDER%3C%3Efolder_id=2534374302023841&bmUID=1164973407121&bmLocale=en_US|date=May 31, 2013}}, New Polaroid Corporation. Press release dated 2002-07-31, Retrieved 2006-12-01.</ref>

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. The company announced a plan that gave the top 45 executives bonuses just for staying at their jobs. Meanwhile, other employees were restricted from selling their stock before leaving their jobs.<ref name="boston-history-polaroid" />{{rp|31}}

As part of the settlement, the original Polaroid Corporation changed its name to '''Primary PDC, Inc.'''<ref name="pdcmain" /><ref name="cfocom" /> 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 creditor]]s<ref name="cfocom" /> (including [[Bond (finance)|bondholders]]).<ref name="imaging">O'Neill, Jerry [http://www.imaginginfo.com/article/article.jsp?id=818&siteSection=27 "The New Polaroid: After Chapter 11"] {{webarchive |url=https://web.archive.org/web/20160611144238/http://www.imaginginfo.com/article/article.jsp?id=818&siteSection=27 |date=June 11, 2016 }}, "From the October 2002 Issue of Imaging Business" via imaginginfo.com. Article updated 2006-02-08, retrieved 2006-12-01.</ref> {{As of|2006|alt=As of late 2006}}, Primary PDC remained in existence under [[Chapter 11, Title 11, United States Code|Chapter 11 bankruptcy protection]],<ref name='pdcshare' /> but conducts no commercial business and has no employees.<ref name="pdcfaq" />

Polaroid’s bankruptcy is widely attributed to the failure of senior management — unable to anticipate the impact of [[digital cameras]] on its film business.<ref>{{cite journal |last1=Tripsas |first1=Mary |last2=Gavetti |first2=Giovanni |title=Capabilities, cognition, and inertia: evidence from digital imaging |journal=Strategic Management Journal |date=October 2000 |volume=21 |issue=10–11 |pages=1147–1161 |doi=10.1002/1097-0266(200010/11)21:10/11<1147::AID-SMJ128>3.0.CO;2-R}}</ref> This type of managerial failure is also known as the [[success trap]].<ref>{{cite web |last1=Mawdsley |first1=Andrew |title=How can we understand the digital transformation of business? |url=http://www.hbs.edu/openforum/openforum.hbs.org/goto/challenge/understand-digital-transformation-of-business/despite-epic-head-start-in-digital-imaging-polaroid-fails-to-make-transformation-to-digital-cameras.html |website=Open Forum Project, Harvard Business School Digital Initiative |access-date=22 December 2018 |archive-date=26 March 2017 |archive-url=https://web.archive.org/web/20170326073743/http://www.hbs.edu/openforum/openforum.hbs.org/goto/challenge/understand-digital-transformation-of-business/despite-epic-head-start-in-digital-imaging-polaroid-fails-to-make-transformation-to-digital-cameras.html |url-status=dead }}</ref><!-- NOT really a good source, but it is what it is.--><ref>{{cite magazine |last1=Reeves |first1=Martin |last2=Harnoss |first2=Johann |title=Don't Let Your Company Get Trapped by Success |url=https://hbr.org/2015/11/dont-let-your-company-get-trapped-by-success |magazine=Harvard Business Review |access-date=22 December 2018 |url-status=live |archive-url=https://web.archive.org/web/20160312044035/https://hbr.org/2015/11/dont-let-your-company-get-trapped-by-success |archive-date=2016-03-12 |date=November 19, 2015 }}</ref><!--better ref-->