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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsRomney's Bain made millions as S.C. steelmaker went bankrupt
MYRTLE BEACH, S.C. Boston-based Bain Capital LLC more than doubled its money on GS Industries Inc. the former parent company of Georgetown Steel under Mitt Romney's leadership in the 1990s, even as the steel manufacturer went on to cut more than 1,750 jobs, shuttered a division that had been around for 100 years and eventually sank into bankruptcy.
Bain Capital spent $24.5 million to acquire GS Industries in 1993, according to an investment prospectus for the company that was obtained by the Los Angeles Times and reviewed by McClatchy Newspapers. By the end of that decade, Bain Capital estimated its partners had made $58.4 million off its investment in GS Industries, according to the prospectus.
Bain Capital's partners also earned multimillion-dollar dividends from GS Industries and annual management fees of about $900,000. But by the time GS Industries filed for bankruptcy protection in 2001, it owed $553.9 million in debts against assets valued at $395.2 million.
Romney - who founded Bain Capital, one of the earliest leveraged-buyout firms, in 1984 - was in charge of the firm for most of the time it owned GS Industries. Romney left Bain Capital in 1999, two years before the bankruptcy, to run the organizing committee for the Winter Olympics in Salt Lake City, Utah.
"We were doing well and then Bain Capital bought us and they took everything they could out of the company without making the investments we needed to stay competitive," said James Sanderson, who has been with the mill since 1974 and served as its union president since 1988. "They ran the company into bankruptcy."
Read more here: http://www.mcclatchydc.com/2012/01/14/135889/romneys-bain-made-millions-as.html?storylink=MI_emailed#storylink=cpy
goclark
(30,404 posts)Republican -- right?
Initech
(100,060 posts)They've held us, our wealth, and our rights hostage and yet the masses continue to vote for them in droves because they've been brainwashed by bullshit talking points and our brainless mass media. It's getting truly disturbing that these assholes continue to get elected.
spanone
(135,816 posts)GoCubsGo
(32,078 posts)Some of the polls have the President within 5 point in South Carolina. When this gets out, it would not surprise me if they get even closer. They really don't like Romney here. I think many republicans will stay home this November. There is also speculation that our illustrious governor, Sarah, Jr....I mean Nikki Haley will be chosen as his VP candidate. She also is not well-loved here. That could drive even more of them to stay home.
TBF
(32,041 posts)Bobcat
(246 posts)Nooooooo.................VULTURE CAPITALIST!!!!!
aint_no_life_nowhere
(21,925 posts)Botany
(70,483 posts)Bottom line Mitt made some of his millions firing people.
madrchsod
(58,162 posts)we made just about every steel product there is. well we did`t make bars or sheets.