clevergirl
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- Oct 22, 2009
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Bain Capital 'purchased' KB for the respectable price of $ 305 million dollars on December 8, 2000.
Bain Capital only offered $ 18 million in cash, the rest was leaveraged debt put on the company.
Sixteen months after the buyout, Bain Capital paid itself $85 million in dividends in early 2002.
January 14, 2004, K·B Toys filed for Chapter 11 bankruptcy protection and closed 365 stores.
Three years later the rest of the 156 stores were closed down.
Romney is a thief.
FACTS:
About eight minutes into the documentary-style piece, the video uses an old jingle from KB Toys along with this narration:
"Romney and Bain bought the 80-year-old company in 2000, loaded KB Toys with millions in debt, then used the money to repurchase Bain stock. The debt was too staggering. By 2004, 365 stores had closed."
That the chain failed isn't in dispute: KB Toys went into bankruptcy in 2004 under Bain, later dissolving in bankruptcy court under different owners in 2008. But what drove it out of business?
Romney's retirement
The first two words in that quote, "Romney and Bain," raise the first question: How was Romney involved with Bain in 2000?
He had retired from the firm in February 1999 to help organize the Salt Lake City Winter Olympics.
PolitiFact | Video blames Bain Capital for demise of KB Toys
Any comment, Chris?
I think he may be watching TV? At any rate he'll be digging for more Bain is evil stuff - on that I bet he and I could even agree~