Polaroid and its US subsidiaries announced the company has filed voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in order to facilitate the Company's ongoing financial restructuring process.

The company said that the financial restructuring process and the filing would not impact day-to-day operations for employees, customers, retailers and suppliers.

Polaroid added that ot had entered bankruptcy with ample cash reserves sufficient to finance the Company?s reorganization under Chapter 11.

Mary L. Jeffries, Polaroid chief executive officer, said, "Our operations are strong and during this process Polaroid will ship products to our retail partners, work with our suppliers and contract manufacturers to fulfill retailer demand, honor customer warranties and employees are expected to receive their regular paychecks without interruption. We expect to continue our operations as normal during the reorganization and are planning for new product launches in 2009."

The financial structuring process and the bankruptcy filing are the result of events at Petters Group Worldwide, the company that has owned Polaroid since 2005. The founder of Petters Group and certain associates are currently under investigation for alleged acts of fraud that have compromised the financial condition of Polaroid and other entities owned by Petters Group. Polaroid is not subject of the ongoing investigation involving Petters Group.