What Bain Vultures did to KB Toys

[Lakhota]

1. At the time it was purchased KB Toys was an industry leader, it was not in trouble.

2. KB Toys was a company that made money and exercised social responsibility.

3. Bain Capital 'purchased' KB for the respectable price of $ 305 million dollars on December 8, 2000.

4. Bain Capital only offered $ 18 million in cash, the rest was leaveraged debt put on the company.

5. "Sixteen months after the buyout, Bain Capital paid itself $85 million in dividends in early 2002."

6. "January 14, 2004, K·B Toys filed for Chapter 11 bankruptcy protection and closed 365 stores."

7. Three years later the rest of the 156 stores were closed down.

But there is a little more to the story. KB Stores had already gone through a tough restructuring in 1996. At that time a private equity bought the company, closed unprofitable stores, and increased profits.

So here is the objective reality of what Bain did.

Bain engineered a private equity purchase of a profitable company that had already gone through 'creative destruction' eliminating unprofitable legacy operations and saddled the company with hundreds of millions of dollars of debt. The company was not just profitable but an example of the kind of companies that demonstrate a wider social conscious for its customers and the larger community. Sixteen months after purchasing the company with only 6% cash of the value Bain takes out dividends at over 400% of their investment. Significantly this was done during the time of the attacks on 9/11 when the country as a whole was undergoing a hightened sense of patriotism, sacrifice and social duty. Less than 2 years after saddling KB Toys with massive debt and taking out astronomical dividends, K-B Toys faces Chapter 11 bankruptcy and closes 354 previously profitable stores.

Vultures take meat that is already dead and complete the final loop in the cycle of life.

Bain took a company that had already been restructured and was surging in profits and cash. There was never any interest by Bain to restructure KB Toys, that had already been done.

Bain purchased KB Toys simply to raid its cash, and they did so during a time when the rest of the country was undergoing a period of reviewing the founding principles of the country.

To call what Bain did to KB Toys as 'Vulture' Capitalism is an insult to Vultures.

They were pirates and this is why there is so much interest to change the subject and not let the real facts of Bain Capital come to the surface during the Republican Primary

More: Here are the facts about Bain and KB Toys, much worse than 'Vulture' Capitalism - Democratic Underground

KB Toys History & Company Profile

 

[Clementine]

I thought Romney left Bain in early 1999, so this has nothing to do with him.

I take it the left is going to rip Bain to shreds and expect that they'll make Romney look bad. And it's merely opinion as to why they purchased KB Toys. I have kids and never really liked KB because they never had a good selection compared to Toys R Us. I think they sold because they were already in trouble. The local KB toy store where I live went under in 1997, long before Bain came along.

 

[Charles_Main]

1. At the time it was purchased KB Toys was an industry leader, it was not in trouble.

2. KB Toys was a company that made money and exercised social responsibility.

3. Bain Capital 'purchased' KB for the respectable price of $ 305 million dollars on December 8, 2000.

4. Bain Capital only offered $ 18 million in cash, the rest was leaveraged debt put on the company.

5. "Sixteen months after the buyout, Bain Capital paid itself $85 million in dividends in early 2002."

6. "January 14, 2004, K·B Toys filed for Chapter 11 bankruptcy protection and closed 365 stores."

7. Three years later the rest of the 156 stores were closed down.

But there is a little more to the story. KB Stores had already gone through a tough restructuring in 1996. At that time a private equity bought the company, closed unprofitable stores, and increased profits.

So here is the objective reality of what Bain did.

Bain engineered a private equity purchase of a profitable company that had already gone through 'creative destruction' eliminating unprofitable legacy operations and saddled the company with hundreds of millions of dollars of debt. The company was not just profitable but an example of the kind of companies that demonstrate a wider social conscious for its customers and the larger community. Sixteen months after purchasing the company with only 6% cash of the value Bain takes out dividends at over 400% of their investment. Significantly this was done during the time of the attacks on 9/11 when the country as a whole was undergoing a hightened sense of patriotism, sacrifice and social duty. Less than 2 years after saddling KB Toys with massive debt and taking out astronomical dividends, K-B Toys faces Chapter 11 bankruptcy and closes 354 previously profitable stores.

Vultures take meat that is already dead and complete the final loop in the cycle of life.

Bain took a company that had already been restructured and was surging in profits and cash. There was never any interest by Bain to restructure KB Toys, that had already been done.

Bain purchased KB Toys simply to raid its cash, and they did so during a time when the rest of the country was undergoing a period of reviewing the founding principles of the country.

To call what Bain did to KB Toys as 'Vulture' Capitalism is an insult to Vultures.

They were pirates and this is why there is so much interest to change the subject and not let the real facts of Bain Capital come to the surface during the Republican Primary

More: Here are the facts about Bain and KB Toys, much worse than 'Vulture' Capitalism - Democratic Underground

KB Toys History & Company Profile

So you pick one case out of THOUSANDS, and a case that happened after Romney had already left?

lol

weak

What you seem to fail to understand is some Companies are simply doomed. Where would KB toys be with out Bain? Our of Business. lol

 

[Caroljo]

It sounds to me like the company that "helped" KB stores in 1996 only put a bandaid on the problem. If they were so good, KB stores wouldn't have gone right back to restructuring again so soon. Bain couldn't help them either....Bain couldn't help EVERY company, some are too far gone.

 

[Rat in the Hat]

Why is this in politics??

 

[freedombecki]

1. At the time it was purchased KB Toys was an industry leader, it was not in trouble.

2. KB Toys was a company that made money and exercised social responsibility.

3. Bain Capital 'purchased' KB for the respectable price of $ 305 million dollars on December 8, 2000.

4. Bain Capital only offered $ 18 million in cash, the rest was leaveraged debt put on the company.

5. "Sixteen months after the buyout, Bain Capital paid itself $85 million in dividends in early 2002."

6. "January 14, 2004, K·B Toys filed for Chapter 11 bankruptcy protection and closed 365 stores."

7. Three years later the rest of the 156 stores were closed down.

But there is a little more to the story. KB Stores had already gone through a tough restructuring in 1996. At that time a private equity bought the company, closed unprofitable stores, and increased profits.

So here is the objective reality of what Bain did.

Bain engineered a private equity purchase of a profitable company that had already gone through 'creative destruction' eliminating unprofitable legacy operations and saddled the company with hundreds of millions of dollars of debt. The company was not just profitable but an example of the kind of companies that demonstrate a wider social conscious for its customers and the larger community. Sixteen months after purchasing the company with only 6% cash of the value Bain takes out dividends at over 400% of their investment. Significantly this was done during the time of the attacks on 9/11 when the country as a whole was undergoing a hightened sense of patriotism, sacrifice and social duty. Less than 2 years after saddling KB Toys with massive debt and taking out astronomical dividends, K-B Toys faces Chapter 11 bankruptcy and closes 354 previously profitable stores.

Vultures take meat that is already dead and complete the final loop in the cycle of life.

Bain took a company that had already been restructured and was surging in profits and cash. There was never any interest by Bain to restructure KB Toys, that had already been done.

Bain purchased KB Toys simply to raid its cash, and they did so during a time when the rest of the country was undergoing a period of reviewing the founding principles of the country.

To call what Bain did to KB Toys as 'Vulture' Capitalism is an insult to Vultures.

They were pirates and this is why there is so much interest to change the subject and not let the real facts of Bain Capital come to the surface during the Republican Primary

More: Here are the facts about Bain and KB Toys, much worse than 'Vulture' Capitalism - Democratic Underground

KB Toys History & Company Profile

Only 1 problem here, Lakhota.

It's somebody else's business.

 

[Clementine]

Why is this in politics??

Because the OP is trying to pin this on Romney somehow. It's a sign of desperation.

 

[Avatar4321]

When there is an 80% success rate, there is a 20% failure rate.

When you are purchasing failing companies to try to rebuild them, that can happen.

Not sure why any of this is relevant to politics though.

 

[candycorn]

1. At the time it was purchased KB Toys was an industry leader, it was not in trouble.

2. KB Toys was a company that made money and exercised social responsibility.

3. Bain Capital 'purchased' KB for the respectable price of $ 305 million dollars on December 8, 2000.

4. Bain Capital only offered $ 18 million in cash, the rest was leaveraged debt put on the company.

5. "Sixteen months after the buyout, Bain Capital paid itself $85 million in dividends in early 2002."

6. "January 14, 2004, K·B Toys filed for Chapter 11 bankruptcy protection and closed 365 stores."

7. Three years later the rest of the 156 stores were closed down.

But there is a little more to the story. KB Stores had already gone through a tough restructuring in 1996. At that time a private equity bought the company, closed unprofitable stores, and increased profits.

So here is the objective reality of what Bain did.

Bain engineered a private equity purchase of a profitable company that had already gone through 'creative destruction' eliminating unprofitable legacy operations and saddled the company with hundreds of millions of dollars of debt. The company was not just profitable but an example of the kind of companies that demonstrate a wider social conscious for its customers and the larger community. Sixteen months after purchasing the company with only 6% cash of the value Bain takes out dividends at over 400% of their investment. Significantly this was done during the time of the attacks on 9/11 when the country as a whole was undergoing a hightened sense of patriotism, sacrifice and social duty. Less than 2 years after saddling KB Toys with massive debt and taking out astronomical dividends, K-B Toys faces Chapter 11 bankruptcy and closes 354 previously profitable stores.

Vultures take meat that is already dead and complete the final loop in the cycle of life.

Bain took a company that had already been restructured and was surging in profits and cash. There was never any interest by Bain to restructure KB Toys, that had already been done.

Bain purchased KB Toys simply to raid its cash, and they did so during a time when the rest of the country was undergoing a period of reviewing the founding principles of the country.

To call what Bain did to KB Toys as 'Vulture' Capitalism is an insult to Vultures.

They were pirates and this is why there is so much interest to change the subject and not let the real facts of Bain Capital come to the surface during the Republican Primary

More: Here are the facts about Bain and KB Toys, much worse than 'Vulture' Capitalism - Democratic Underground

KB Toys History & Company Profile

They did largely the same thing with Dunkin Donuts. The debt load it has now is likely going to kill the company. I hope it makes it regardless since I partake in their product from time to time. Bain moves in, assumes more debt; pays themselves back then....we will see what happens.

 

[LeftofLeft]

1. At the time it was purchased KB Toys was an industry leader, it was not in trouble.

2. KB Toys was a company that made money and exercised social responsibility.

3. Bain Capital 'purchased' KB for the respectable price of $ 305 million dollars on December 8, 2000.

4. Bain Capital only offered $ 18 million in cash, the rest was leaveraged debt put on the company.

5. "Sixteen months after the buyout, Bain Capital paid itself $85 million in dividends in early 2002."

6. "January 14, 2004, K·B Toys filed for Chapter 11 bankruptcy protection and closed 365 stores."

7. Three years later the rest of the 156 stores were closed down.

But there is a little more to the story. KB Stores had already gone through a tough restructuring in 1996. At that time a private equity bought the company, closed unprofitable stores, and increased profits.

So here is the objective reality of what Bain did.

Bain engineered a private equity purchase of a profitable company that had already gone through 'creative destruction' eliminating unprofitable legacy operations and saddled the company with hundreds of millions of dollars of debt. The company was not just profitable but an example of the kind of companies that demonstrate a wider social conscious for its customers and the larger community. Sixteen months after purchasing the company with only 6% cash of the value Bain takes out dividends at over 400% of their investment. Significantly this was done during the time of the attacks on 9/11 when the country as a whole was undergoing a hightened sense of patriotism, sacrifice and social duty. Less than 2 years after saddling KB Toys with massive debt and taking out astronomical dividends, K-B Toys faces Chapter 11 bankruptcy and closes 354 previously profitable stores.

Vultures take meat that is already dead and complete the final loop in the cycle of life.

Bain took a company that had already been restructured and was surging in profits and cash. There was never any interest by Bain to restructure KB Toys, that had already been done.

Bain purchased KB Toys simply to raid its cash, and they did so during a time when the rest of the country was undergoing a period of reviewing the founding principles of the country.

To call what Bain did to KB Toys as 'Vulture' Capitalism is an insult to Vultures.

They were pirates and this is why there is so much interest to change the subject and not let the real facts of Bain Capital come to the surface during the Republican Primary

More: Here are the facts about Bain and KB Toys, much worse than 'Vulture' Capitalism - Democratic Underground

KB Toys History & Company Profile

Contrast your toy story tragedy to what the Obama Administration did to the Gulf Coast Economy dependent on deepwater oil drilling.

 

[old navy]

KB Toys sucked.

 

[Lakhota]

Buyout Profits Keep Flowing to Romney

By NICHOLAS CONFESSORE, CHRISTOPHER DREW and JULIE CRESWELL

Almost 13 years ago, Mitt Romney left Bain Capital, the successful private equity firm he had helped start, and moved to Utah to rescue the Salt Lake City Olympic Games and begin a second career in public life.

Yet when it came to his considerable personal wealth, Mr. Romney never really left Bain.

In what would be the final deal of his private equity career, he negotiated a retirement agreement with his former partners that has paid him a share of Bain’s profits ever since, bringing the Romney family millions of dollars in income each year and bolstering the fortune that has helped finance Mr. Romney’s political aspirations.

The arrangement allowed Mr. Romney to pursue his career in public life while enjoying much of the financial upside of being a Bain partner as the company grew into a global investing behemoth.

More: Buyout Profits Keep Flowing to Romney - The New York Times

 

[del]

1. At the time it was purchased KB Toys was an industry leader, it was not in trouble.

2. KB Toys was a company that made money and exercised social responsibility.

3. Bain Capital 'purchased' KB for the respectable price of $ 305 million dollars on December 8, 2000.

4. Bain Capital only offered $ 18 million in cash, the rest was leaveraged debt put on the company.

5. "Sixteen months after the buyout, Bain Capital paid itself $85 million in dividends in early 2002."

6. "January 14, 2004, K·B Toys filed for Chapter 11 bankruptcy protection and closed 365 stores."

7. Three years later the rest of the 156 stores were closed down.

But there is a little more to the story. KB Stores had already gone through a tough restructuring in 1996. At that time a private equity bought the company, closed unprofitable stores, and increased profits.

So here is the objective reality of what Bain did.

Bain engineered a private equity purchase of a profitable company that had already gone through 'creative destruction' eliminating unprofitable legacy operations and saddled the company with hundreds of millions of dollars of debt. The company was not just profitable but an example of the kind of companies that demonstrate a wider social conscious for its customers and the larger community. Sixteen months after purchasing the company with only 6% cash of the value Bain takes out dividends at over 400% of their investment. Significantly this was done during the time of the attacks on 9/11 when the country as a whole was undergoing a hightened sense of patriotism, sacrifice and social duty. Less than 2 years after saddling KB Toys with massive debt and taking out astronomical dividends, K-B Toys faces Chapter 11 bankruptcy and closes 354 previously profitable stores.

Vultures take meat that is already dead and complete the final loop in the cycle of life.

Bain took a company that had already been restructured and was surging in profits and cash. There was never any interest by Bain to restructure KB Toys, that had already been done.

Bain purchased KB Toys simply to raid its cash, and they did so during a time when the rest of the country was undergoing a period of reviewing the founding principles of the country.

To call what Bain did to KB Toys as 'Vulture' Capitalism is an insult to Vultures.

They were pirates and this is why there is so much interest to change the subject and not let the real facts of Bain Capital come to the surface during the Republican Primary

More: Here are the facts about Bain and KB Toys, much worse than 'Vulture' Capitalism - Democratic Underground

KB Toys History & Company Profile

They did largely the same thing with Dunkin Donuts. The debt load it has now is likely going to kill the company. I hope it makes it regardless since I partake in their product from time to time. Bain moves in, assumes more debt; pays themselves back then....we will see what happens.

every time you lie, the baby jesus kills a kitten.

why do you hate kittens?

 

[Conservative]

I thought Romney left Bain in early 1999, so this has nothing to do with him.

I take it the left is going to rip Bain to shreds and expect that they'll make Romney look bad. And it's merely opinion as to why they purchased KB Toys. I have kids and never really liked KB because they never had a good selection compared to Toys R Us. I think they sold because they were already in trouble. The local KB toy store where I live went under in 1997, long before Bain came along.

Correct. But according to the left, it's still Bush's, I mean, Romney's fault.

 

[Lakhota]

So, according to The New York Times, Romney continues to be a major stakeholder in Bain Capital.

 

[francoHFW]

A fat cat vulture capitalist W clone? No thanks. You must be mad...

Romney's ACTUAL plan- Cut taxes on rich, destroy Medicare/aid, Health Reform, raise pentagon spending, cut regs on Wall St, worry about debt in 2035...BRILLIANT

 

[del]

So, according to The New York Times, Romney continues to be a major stakeholder in Bain Capital.

that's awesome

have a cookie

the recipe is sacajaliar warren's from pow wow chow

they're authentic cherokee vienna fingers.

you can tell by the high cheek bones.

enjoy!

 

[del]

A fat cat vulture capitalist W clone? No thanks. You must be mad...

Romney's ACTUAL plan- Cut taxes on rich, destroy Medicare/aid, Health Reform, raise pentagon spending, cut regs on Wall St, worry about debt in 2035...BRILLIANT

shouldn't you be sculpting chess pieces from your own fecal material?

 

[Rozman]

Why is this in politics??

Because the OP is trying to pin this on Romney somehow. It's a sign of desperation.

Looks like panic in the streets.....
First Wisconsin was supposed to be a blowout where Gov Walker gets the snot kicked out of him and it doesn't happen...Now the Libs are grasping at anything they can to beat down Romney so they can build up Obama....

Pathetic...
Too bad the Democrat voter is just to stupid to see through it...

 

[hortysir]

So, according to The New York Times, Romney continues to be a major stakeholder in Bain Capital.

I own scattered stocks of several companies.

I'm libel for their business decisions?


Your blind partisanship is obvious and painful to witness, honestly.