This piece was reprinted by OpEd News with permission or license. It may not be reproduced in any form without permission or license from the source.
In 1998, Ampad struggled to keep operating. It couldn't challenge foreign and superstore competitors. Bain cut its annual management fee to $1.5 million.
In 1999, revenues kept falling. Ampad closed its Buffalo plant, firing 185 workers.
In 2000, the company filed for Chapter 11 bankruptcy to reorganize.
In 2001, it shifted to Chapter 7 to liquidate assets and pay creditors. Senior secured ones took a 50% haircut. From acquisition to bankruptcy, Bain made over $100 million on a $5 million investment. Workers and shareholders lost everything. Creditors lost half their money or more.
Dade Behring also netted Bain eightfold on its investment. Over 1,000 workers were fired. The company subsequently went bankrupt, but restructured and later became profitable.
From 1990 - 1992, Romney returned to Bain & Company as CEO. At the time, it faced financial collapse. A combination of restructuring, real estate deals, and loans restored profitability.
In 1992, he returned to BC, then left in February 1999 to head the 2002 Salt Lake City Olympic Games Organizing Committee. By then, Bain was one of the nation's top private equity firms with up to 18 partners, 115 employees, and $4 billion under management. Today, it's $60 billion.
According to University of Chicago Booth School of Business Professor Steven Kaplan, Romney, "came up with a model that was very successful and very innovative, and that now everybody uses."
Next Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
