Politics bring a Madison Heights company's demise under Bain Capital to light

[Lowell]

"Politics ain't beanbag" and everything a candidate did or was attached to gets the spotlight via opposition research. Witness this 1995 story as cited by Crains.

DETROIT — The Obama campaign continued its assault on Mitt Romney's record at Bain Capital on Wednesday, as it said the investment firm that Romney founded was responsible for laying off nearly 1,000 employees at a now-defunct Michigan auto supplier.

Bain bought 39 percent of Madison Heights-based Cambridge Industries Inc. in 1995. Within two years, the investment firm owned a majority stake in the Cambridge. By 2000, Cambridge suffered financial trouble stemming from an overeager acquisition strategy, growing debt and years of earnings shortfalls.

That year Bain took Cambridge into Chapter 11 bankruptcy and sold the company to Dearborn-based Meridian Automotive Systems, which slashed more than 1,000 jobs, according to news reports . In its bankruptcy filing, Cambridge listed debt worth $459.7 million. In 2009, Meridian filed for bankruptcy and liquidated its assets.

It's a bit like my saying for these time, "Everything you write on the internet is forever."

[JBMcB]

Next paragraph:

Dozens of other large U.S.-based automotive suppliers reorganized or liquidated under bankruptcy protection over the same time period as the Cambridge and Meridian bankruptcies.

Bain gambles on companies that are in trouble. Some they manage to bring back to profitability, some they don't.

There is a good series covering private equity companies like Bain on the Planet Money podcast on NPR - I suggest listening to it before passing judgement on what Bain does.

[rb336]

Bain's record speaks for itself

[Cincinnati_Kid]

If it has anything to do with Romney, I'm passing judgement regardless. The guy is a ......-bag. He talks out the side of his mouth.