Obama 2012 campaign ad: “With American Pad & Paper (Ampad), Mitt Romney and his partners took a small but successful paper products business and merged it with other companies in the industry, piling up debt as they went. Ultimately, the company was unable to keep up with the interest payments on its debt and was forced into bankruptcy, but not before Romney and his partners were able to squeeze out more than $100 million for themselves.” This was just posted today on Youtube.
In the 1980′s office printing systems were integrating with LANs, it was just the beginning of computers obsoleting the old office copier. The point being truckloads of paper were delivered to so many businesses and Ampad was a paper company.
In an effort to improve business for Ampad, Bain purchased ‘customers’ for it who too were struggling.
Ampad had been bought and sold by many others prior to Bain taking a chance. The idea that they had no interest in their employees is like government hiring people for $71,000, regardless of performance, the best possible benefits, no fire guarantee, and expecting them to excel. Bain provided the opportunity to save what nobody thought possible, using their money, skills, and asking some sacrifice by the employees.
The company was not successful. The debt already existed. Romney had created hundreds of thousands of new jobs. This decision to end Ampad was not his, he had left the company. The union president led the strike to close it. News media hides this.
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Posted on May 21, 2012
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