The Minnesota based Pohlad family has acquired the biggest stake in Polaroid as part of its $70 mn deal. For several decades, Polaroid had been the most trusted name for instant cameras in addition to its latest line of electronic goods, tablets, TVs and cameras. But in 2008, the company submitted a request for bankruptcy protection. In 2009, the company sold off all its assets to private investors, with the bankruptcy estate still holding a partial stake in the rapidly declining company.
Pohlad to control 65 percent of company
According to reports by Star Tribune, the Federal bankruptcy court recentlyapproved the sale of the remaining ownership share to the Pohlads, in addition to an undisclosed partner. Along with purchasing a majority stake, the Marquette Cos, the company owned by Pohlad also acquired rights of Polaroid’s previous investors so that it could gain control over65% of itsbusiness in a deal finalized on Monday.
Marquette Cos sees itself as a force to reckon with!
In its media statement to the Star Tribune, Jann Ozzello Wilcox, the chief investment officer for the company, spelt out three reasons for Marquette Cos’ decision to purchase Polariod. Firstly, the company wanted to seek out strong and strategic opportunities for growth and Polaroid fulfilled the criteria. Secondly, Polaroid,with its iconic brand status and licensing model,fitted their vision well. Thirdly, thestrong management team as well as local factors also contributed to the purchase.
Deal is essential for the stability and sustenance of the iconic brand
In a statement released by Scott Hardy, the CEO of Polaroid, the deal has been described as bringing much stability in the form of capital to the popular Polaroid brand for a long time to come. In his words, “This sale will be the next step in the ongoing resurgence of our iconic American brand and we are very excited about what it means for Polaroid in 2015 and beyond,”