How did Polaroid end up bankrupt? They’re looking at either selling the company, or filing Chapter 11. They expect to default on over $30m of loan payments in the next few months. It’s easy to say that they were caught out by digital cameras, but it’s not that simple. I remember the early days of digital photography, around 1996-97. For a while, Polaroid were leaders in the field—the PDC-2000 was well-reviewed, and praised for its outstanding image quality.