Fire in the hole!

[BDBoop]

Mitt Romney's Private Equity Nightmare - Businessweek

Back in 1992, Bain acquired a manufacturer called American Pad & Paper, or Ampad. Bain then used Ampad as a vehicle to buy and restructure similar companies. Following standard “roll-up” strategy, Bain closed factories and laid off workers in anticipation of selling off a leaner, more profitable company via an initial public stock offering.

Two years into the roll up, Bain had Ampad acquire an office supplies plant in Marion, Ind., a manufacturing town 70 miles northeast of Indianapolis. At the time, Johnson worked the night shift making hanging files. “We come back from the July 4th holiday, and this is what we find posted,” Johnson says, producing from the Romney box a one-page notice: “As of 3 p.m. today, July 5, 1994, your employment with SCM Office Supplies Inc. will end.” Most of the 258 employees were allowed to reapply for jobs at reduced wages and benefits. Johnson’s pay fell 22 percent, he says, from $10.05 an hour to $7.88. Dismayed to see their old union contract torn up, the Marion workers negotiated with Ampad management for several months, then called a risky strike. In early 1995, Ampad called the union’s bluff, closed the plant, and laid off the remaining workers.

And the hits, they just keep coming.

 

[DontBeStupid]

Mitt Romney's Private Equity Nightmare - Businessweek

Back in 1992, Bain acquired a manufacturer called American Pad & Paper, or Ampad. Bain then used Ampad as a vehicle to buy and restructure similar companies. Following standard “roll-up” strategy, Bain closed factories and laid off workers in anticipation of selling off a leaner, more profitable company via an initial public stock offering.

Two years into the roll up, Bain had Ampad acquire an office supplies plant in Marion, Ind., a manufacturing town 70 miles northeast of Indianapolis. At the time, Johnson worked the night shift making hanging files. “We come back from the July 4th holiday, and this is what we find posted,” Johnson says, producing from the Romney box a one-page notice: “As of 3 p.m. today, July 5, 1994, your employment with SCM Office Supplies Inc. will end.” Most of the 258 employees were allowed to reapply for jobs at reduced wages and benefits. Johnson’s pay fell 22 percent, he says, from $10.05 an hour to $7.88. Dismayed to see their old union contract torn up, the Marion workers negotiated with Ampad management for several months, then called a risky strike. In early 1995, Ampad called the union’s bluff, closed the plant, and laid off the remaining workers.

And the hits, they just keep coming.

Allow me to present the "conservative" rebuttal...

This is clearly the union's fault.

 

[Conservative]

from the OP link...

The office supply industry was struggling and consolidating by the time Bain got into the game. As so often happens with a brutal private equity makeover, workers lost jobs they may well have lost anyway, with or without the assistance of the financial engineers. This is the weakness in the Obama campaign’s one-sided and, in a sense, unfair broadside against private equity.

 

[g5000]

And then the internet came along and everyone stopped buying notepads and envelopes.

 

[BDBoop]

And then the internet came along and everyone stopped buying notepads and envelopes.

Yes, that would have been nice. They would have gotten another - what? Six-eight years of employment, and probably some R&D work around time?

Why isn't Office Depot dead?

 

[Conservative]

your own source says they might have lost their jobs anyway... so... your point is that Romney and Bain Capital were involved in something that might have happened anyway...wow.. I'll alert the media.

 

[g5000]

And then the internet came along and everyone stopped buying notepads and envelopes.

Yes, that would have been nice. They would have gotten another - what? Six-eight years of employment, and probably some R&D work around time?

Why isn't Office Depot dead?

Economy of scale. See any mom and pop stationary stores around any more like they had everywhere when I was a kid?

And by the way, Ampad is still around, too.

 

[Conservative]

And then the internet came along and everyone stopped buying notepads and envelopes.

Yes, that would have been nice. They would have gotten another - what? Six-eight years of employment, and probably some R&D work around time?

Why isn't Office Depot dead?

Economy of scale. See any mom and pop stationary stores around any more like they had everywhere when I was a kid?

And by the way, Ampad is still around, too.

bought out by Mead, I believe.

 

[The Rabbi]

The Left is running on the idea that Bain bought healthy companies, looted them, and then sold or bankrupted them.
This is unbelievable. The left thinks that banks and other lenders are rubes waiting to be shorn and they never caught on to Bain's scheme in the 23+ years they were in business. If Bain were really doing that who would invest with them? Who would lend them money?

 

[Trajan]

Mitt Romney's Private Equity Nightmare - Businessweek

Back in 1992, Bain acquired a manufacturer called American Pad & Paper, or Ampad. Bain then used Ampad as a vehicle to buy and restructure similar companies. Following standard “roll-up” strategy, Bain closed factories and laid off workers in anticipation of selling off a leaner, more profitable company via an initial public stock offering.

Two years into the roll up, Bain had Ampad acquire an office supplies plant in Marion, Ind., a manufacturing town 70 miles northeast of Indianapolis. At the time, Johnson worked the night shift making hanging files. “We come back from the July 4th holiday, and this is what we find posted,” Johnson says, producing from the Romney box a one-page notice: “As of 3 p.m. today, July 5, 1994, your employment with SCM Office Supplies Inc. will end.” Most of the 258 employees were allowed to reapply for jobs at reduced wages and benefits. Johnson’s pay fell 22 percent, he says, from $10.05 an hour to $7.88. Dismayed to see their old union contract torn up, the Marion workers negotiated with Ampad management for several months, then called a risky strike. In early 1995, Ampad called the union’s bluff, closed the plant, and laid off the remaining workers.

And the hits, they just keep coming.

And then the internet came along and everyone stopped buying notepads and envelopes.

Yes, that would have been nice. They would have gotten another - what? Six-eight years of employment, and probably some R&D work around time?

Why isn't Office Depot dead?

how about Staples?

you know, the one he was instrumental in getting started?


you're still a hack...that hit keeps coming too.




_______________

Toro- I told you your explanation would not matter.....some can read, some can process but few can do both....

 

[BDBoop]

Do tell.

http://www.usmessageboard.com/5317956-post632.html

 

[Conservative]

Do tell.

http://www.usmessageboard.com/5317956-post632.html

your own OP FAILed you. Give up while you're a behind

 

[occupied]

Wall Street has been living off mergers and acquisitions for years, the blood of our manufacturing sector is on a lot of hands by now.

 

[SFC Ollie]

And all of this became Staples with over 98,000 empolyees today. Good job Mitt....

 

[dilloduck]

Wall Street has been living off mergers and acquisitions for years, the blood of our manufacturing sector is on a lot of hands by now.

And yet it still amazes me that there are no Democrats on Wall Street. One would have thought that they would have figured out how to get rich by now.

 

[The Infidel]

The Left is running on the idea that Bain bought healthy companies, looted them, and then sold or bankrupted them.
This is unbelievable. The left thinks that banks and other lenders are rubes waiting to be shorn and they never caught on to Bain's scheme in the 23+ years they were in business. If Bain were really doing that who would invest with them? Who would lend them money?

Romney spent Bain's money.....



All the while its OK for Obama to give out billions of "taxpayer dollars" to industries that were destined for failure. Plus, those businesses pay their exec's huge bonuses and they give giant donations of "taxpayer dollars" back to the Dems for campaign donations. Its a huge circle jerk and it is all OK...

 

[The T]

The Left is running on the idea that Bain bought healthy companies, looted them, and then sold or bankrupted them.
This is unbelievable. The left thinks that banks and other lenders are rubes waiting to be shorn and they never caught on to Bain's scheme in the 23+ years they were in business. If Bain were really doing that who would invest with them? Who would lend them money?

the left loves living in lies. They're nothing without them.

 

[The T]

Wall Street has been living off mergers and acquisitions for years, the blood of our manufacturing sector is on a lot of hands by now.

And yet it still amazes me that there are no Democrats on Wall Street. One would have thought that they would have figured out how to get rich by now.

Only a healthy portion DONATE to Leftists...or to whomever is in power...

 

[The T]

Mitt Romney's Private Equity Nightmare - Businessweek

Back in 1992, Bain acquired a manufacturer called American Pad & Paper, or Ampad. Bain then used Ampad as a vehicle to buy and restructure similar companies. Following standard “roll-up” strategy, Bain closed factories and laid off workers in anticipation of selling off a leaner, more profitable company via an initial public stock offering.

Two years into the roll up, Bain had Ampad acquire an office supplies plant in Marion, Ind., a manufacturing town 70 miles northeast of Indianapolis. At the time, Johnson worked the night shift making hanging files. “We come back from the July 4th holiday, and this is what we find posted,” Johnson says, producing from the Romney box a one-page notice: “As of 3 p.m. today, July 5, 1994, your employment with SCM Office Supplies Inc. will end.” Most of the 258 employees were allowed to reapply for jobs at reduced wages and benefits. Johnson’s pay fell 22 percent, he says, from $10.05 an hour to $7.88. Dismayed to see their old union contract torn up, the Marion workers negotiated with Ampad management for several months, then called a risky strike. In early 1995, Ampad called the union’s bluff, closed the plant, and laid off the remaining workers.

And the hits, they just keep coming.

I see sour grapes for something that was doomed to failure anyway...

 

[The Rabbi]

The Left is running on the idea that Bain bought healthy companies, looted them, and then sold or bankrupted them.
This is unbelievable. The left thinks that banks and other lenders are rubes waiting to be shorn and they never caught on to Bain's scheme in the 23+ years they were in business. If Bain were really doing that who would invest with them? Who would lend them money?

Romney spent Bain's money.....



All the while its OK for Obama to give out billions of "taxpayer dollars" to industries that were destined for failure. Plus, those businesses pay their exec's huge bonuses and they give giant donations of "taxpayer dollars" back to the Dems for campaign donations. Its a huge circle jerk and it is all OK...

Huh?
Can I get an English translation of that?