
Originally Posted by
Wiseone
Again, I'm not business expert. However I do know that Bain Capital and the companies they invested in, including the ones that went bankrupt, were not competitors. You're fundamental understanding of this is obviously wrong, so I don't trust your conclusions. For example from your source, Stage Stores is a department store, Bain Capital is not. The two are not competitors. Also, while Stage Stores example did file bankruptcy in 2000, bankruptcy is hardly the death of a company. What happened was the company probably grew beyond its means and filed for bankruptcy, it shrunk a little and sold many of its assets to pay of its debts. The company employees roughly 13,000 people according to its website.
You're source is also too simple, for example I quote "Bain in 1988 put $5 million down to buy Stage Stores, and in the mid-’90s took it public, collecting $100 million from stock offerings. Stage filed for bankruptcy in 2000." That is all it has to say about Stage, which frankly is not enough. Google for example was invested into, went public, however obviously has not gone bankrupt. CLEARLY there must be more to the story than "Bain was there, the went public, then died." And your source does not provide.
You also forget that many times companies call in investor firms like Bain because they are already in a bad situation, and therefore they need A) investor money to stay afloat and B) someone who can help their company reorganize, which may mean trimming the fat. Bain, being the investor, has the right if they assume some ownership to make those changes to return the company to profitability, and sometimes that means cutting workers. Bear in mind that cutting workers is not always an "evil corporate scheme" but sometimes is simple reality, I don't know why Stage got into trouble, again your source doesn't say, but it may have been losing business for whatever reason and simply did not need as many employees to do the reduced work and sales load. Its simple reality if the company simply cannot support that many workers, AND if its due to reduced profits because of a reduced market.
In the end there are a million factors at place, its not as simple as "Bain walked and death followed in its wake." Heck many Mitt Romney and Bain did crash in their like a bunch of drunk college boys, steal everything that wasn't bolted to the floor and make off like millionaires stealing the company like a raped woman in an alley. Maybe, problem is YOU don't know and I don't know, what I'm trying to show is nothing more than that. You don't have the answers or the knowledge to make the conclusions you are making