More Bain, More Bain, more Pain

[malaise]

http://www.nytimes.com/2012/06/23/us/politics/companies-ills-did-not-harm-romneys-firm.html?_r=1&src=me&ref=general
<snip>
Cambridge Industries, an automotive plastics supplier whose losses had been building for three consecutive years, finally filed for bankruptcy in May 2000 under a mountain of debt that had ballooned to more than $300 million.

Yet Bain Capital, the private equity firm that controlled the Michigan-based company, continued to religiously collect its $950,000-a-year “advisory fee” in quarterly installments, even to the very end, according to court documents.

In all, Bain garnered more than $10 million in fees from Cambridge over five years, including a $2.25 million payment just for buying the company, according to bankruptcy records and filings with the Securities and Exchange Commission. Meanwhile, Bain’s investors saw their $16 million investment in Cambridge wiped out.

The private equity firm, co-founded and run by Mitt Romney, held a majority stake in more than 40 United States-based companies from its inception in 1984 to early 1999, when Mr. Romney left Bain to lead the Salt Lake City Olympics. Of those companies, at least seven eventually filed for bankruptcy while Bain remained involved, or shortly afterward, according to a review by The New York Times. In some instances, hundreds of employees lost their jobs. In most of those cases, however, records and interviews suggest that Bain and its executives still found a way to make money.

[Jackpine Radical]

1. Capitalism at its best.

[GarroHorus]

2. I have no problems with capitalism, so long as it is well regulated.

Regulations should bein place to keep the Bain's of the world from preying on tax dollars because that's where a ton of their cash came from. Take that out of the equation and they'd be forced to rebuild companies they acquire.

[salin]

3. So the workers lose, the investor's lose, but the partners make out big!

Just like the Rmoney partners the brother's Koch intend to do so on Mitt's current venture.

[malaise]

6. Amazing isn't it

[aint_no_life_nowhere]

4. No wonder Romney doesn't want to sit for interviews and answer questions

except for love fests on Fox.

[Avalux]

5. A company I know was sold last year, Bain withdrew their bid at the last minute.

It is now owned by another private equity firm. I doubt it makes little difference which one bought the company; the game is the same. There is an opportunity to make the firm gobs of money in a short time frame - about 5 years. Part of the game is reducing the workforce, slicing off and selling business units and developing new products that will rake in $$ (in a compressed time period - the employees who still have jobs must take up the slack and work harder). If it works, great. If it doesn't.......

At the end of that 5 years, if their plan to turn a huge profit doesn't work, the private equity firm won't suffer any losses, they'll still get theirs. The company and employees will be destroyed.

They are parasites.