Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Romneys Private Equity Firm Caused Several Corporate Bankruptcies, Thousands Of Layoffs

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » General Discussion: Presidency Donate to DU
 
flpoljunkie Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-13-11 11:28 AM
Original message
Think Progress: FLASHBACK: Romneys Private Equity Firm Caused Several Corporate Bankruptcies, Thousands Of Layoffs

By Pat Garofalo
Apr 12, 2011

Romney is right to be talking about job creation considering the unemployment rate, but his record in the private sector is one of job destruction. As Politico detailed, Romneys company, Bain Capital, was in the business of buying up distressed companies, slashing them to bits, and then selling them off, resulting in lots of job losses:

In 1992, the firm acquired American Pad & Paper. By 1999, the year Romney left Bain, two American plants were closed, 385 jobs had been cut and the company was $392 million in debt. The next year, Ampad was forced into bankruptcy.

Bain Capital and Goldman Sachs bought Dade International for about $450 million in 1994. The firm quickly fired or relocated at least 900 workers. Over the next several years, it sunk increasingly into debt and laid off 1,000 workers. In 2002 after Romney had left Bain it filed for Chapter 11 bankruptcy protection.

A 1997 buyout of LIVE Entertainment for $150 million resulted in 40 layoffs, roughly one in four of the companys 166 workers. The job cuts affected all aspects of the company, from production and acquisition to legal and public relations.

In 1997, Bain bought a stake in DDI Corp., a maker of electronic circuit boards. Three years later, Bain took the company public and collected a $36 million payout. But by August 2003, the company filed for bankruptcy protection, laying off more than 2,100 workers.


22 percent of the money Bain Capital raised from 1987 to 1995 was invested in five businesses Stage Stores, American Pad & Paper, GS Indusries, Dade, and Details. These five made Bain $578 million in profit, even as all five eventually went bankrupt.

As the New York Posts Josh Koshman wrote, theres little question made a fortune from businesses he helped destroy. Travis Waldron noted today that Romneys company also boosted its profits and thus enriched Romney by abusing offshore tax havens.

http://thinkprogress.org/economy/2011/04/12/173892/romn...
Printer Friendly | Permalink |  | Top
KansDem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-13-11 11:41 AM
Response to Original message
1. Well, the perfect GOP candidate!
He won't have to "learn on the job!"; he already has experience trashing an economy while getting rich from it.

Just what we need for the USA!
Printer Friendly | Permalink |  | Top
 
AtomicKitten Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-13-11 11:48 AM
Response to Original message
2. His actual economic record doesn't match the accolades the MSM is giving him.
I suspect this will be pointed out as the GOP primary proceeds. Democrats need to hammer his actual economic record over and over and over again.

k&r
Printer Friendly | Permalink |  | Top
 
Donnachaidh Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-13-11 12:16 PM
Response to Original message
3. uhh, who is surprized by this? The company was by definition, a corporate raider
very much like that other vulture - Carl Icahn.

Private Equity firm my granny's ass -- they sought out companies to kill, for profit.
Printer Friendly | Permalink |  | Top
 
flpoljunkie Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-13-11 12:31 PM
Response to Reply #3
5. The problem lies with the media giving Romney a pass while acknowledging voters will vote for him if
economy still dragging because he 'knows something about business.' We surely cannot rely on the media to educate the American people on what Romney's business record really was.
Printer Friendly | Permalink |  | Top
 
girl gone mad Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-13-11 12:20 PM
Response to Original message
4. PE firms don't just buy up distressed companies and slash them to bits..
they load them up with debt, pre-borrowed against any and all assets. That's where the big payouts come from and that's why so many end up in BK.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Fri Nov 16th 2018, 12:38 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » General Discussion: Presidency Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC