Bankrupt photography pioneer Polaroid sold for $59.1 million

Polaroid, the pioneer of instant photography, was sold in an auction for $59.1 million to the private equity firm Patriarch Partners. (See: Polaroid gets court nod to auction assets; bids start at $42 million)

Patriarch's other portfolio companies include Rand McNally, MD Helicopters and Arizona Iced Tea. In total, it has equity stakes in 65 firms and manages assets worth more than $6 billion.

Patriarch's offer for assets, including most of Polaroid's intellectual-property rights, is subject to approval by a judge in United States Bankruptcy Court in St. Paul. ''We intend to continue rebuilding the brand of this great American company on a worldwide scale and to re-establish Polaroid as a globally acknowledged innovator,'' Lynn Tilton, CEO of Patriarch, said.

Patriarch was one of four investor groups to bid on Polaroid's assets. Others included PHC Acquisitions, an affiliate of Luxembourg-based private-equity firm Genii Capital SA, and a group of Polaroid lien holders that included Acorn Capital Group, based in Greenwich, Connecticut, and Ritchie Capital Management, based in Lisle, Illinois.

Polaroid filed for bankruptcy for the second time in December after its owner since 2005, the Petters Group Worldwide, was accused of using fake documents to attract loans from hedge funds and using their money to pay off earlier investors. The firm's founder, Thomas Petters, was charged with mail fraud, wire fraud and money laundering. His trial is scheduled to begin on 9 June. (See: Polaroid felled by owners malfeasance; in bankruptcy protection)

Polaroid's Chapter 11 papers listed debt of $301.8 million. The company previously entered bankruptcy in 2001 after digital cameras rendered obsolete the instant-film technology that made it a household name. Petters Group bought the company three years later for $426 million and moved its headquarters from Concord, Massachusetts.

Polaroid, founded in 1937 by legendary inventor Edwin Land, made protective glasses and goggles for the US military during World War II. It sold the first instant camera in 1948, making $5 million in sales in the first year, according to the company's Web site.

Polaroid in February 2008 said it would exit the film business and close plants in the US, Mexico and the Netherlands to focus on digital photography and flat-panel televisions. The company stopped making instant cameras for commercial use in 2006 and halted production of consumer models last year.

Patriarch will build on work done earlier by Polaroid to reposition the company ''as the leading brand in digital instant photography and selected consumer electronics categories,'' Polaroid CEO Mary Jeffries said in a joint statement with its buyer. Patriarch Partners has the vision and the resources to act on the myriad of opportunities to leverage this iconic brand,'' she said.