Is Romney talking much about KB Toys in his campaign, it is his most profitable take-over, to bad no-survivors?
KB Toys was purchased and taken private in 2000 by the leveraged buyout firm of Bain Capital for $305 million, Bain announced the purchase on Dec. 8, 2000. Only $18 million of the purchase money was cash, the rest was borrowed against the assets of the company. Sixteen months after the buyout, Bain Capital paid itself $85 million in dividends (a 372% return on their investment) in 2002. Two years later, due to increasing competition from national discount chains such as Wal-Mart and Target and its enormous debt, on January 14, 2004, K·B Toys filed for Chapter 11 bankruptcy protection and closed 365 stores.
K·B closed 156 stores on November 8, 2007. The Gordon Brothers Group handled the liquidation of these stores. On February 9, 2009, K·B closed the remaining stores following the second bankruptcy filing in four years. In addition, K·B Toys' website was closed down.
The K·B Toys brand and related intangible assets were sold by Streambank LLC to Toys R Us on September 4, 2009, for a reported $2.1 million. Because K·B Toys' 460 stores had been closed and liquidated, the sale applies mainly to the company's logo, website, and trademarks/intellectual properties. Toys R Us remains unsure of how the K·B name will fit into its future business plan. So far, Toys R Us uses the K·B Toys brand in self-manufactured toys, under the name "KB Classics" with the K·B Toys logo.
- Mr. WolfLv 78 years agoFavorite Answer
He doesn't talk about his record as Governor either. In January 2003 at the headquarters of Konarka Technologies Romney called for more grants to the renewable energy sector and he said “I believe now is the time to refocus its assets in such a manner that it can become a major economic springboard for the Commonwealth by focusing on job creation in the renewable energy sector”. Mitt Romney sent $1.5 million to Konarka solar energy company after he became governor, along with $2.5 million to Evergreen Solar, which also filed for bankruptcy last year, and provided a $2.5 million loan to the biotech firm Spherics Inc., which closed three years later.
- ?Lv 68 years ago
You are correct, not all of Bain Capital's projects have been successful. That's the crazy thing about life, even if Bain Capital hadn't bought KB Toys, KB Toys STILL would have gone bankrupt. Not because of bad leadership but because in your own words: "due to increasing competition from national discount chains such as Wal-Mart and Target ". Bain Capital has had several large success stories as well like: Staples, Domino's Pizza, along with others.
- RJCLv 78 years ago
It is also 2 years after Romney left Bain.
•The film claims Romney was involved in the acquisition, management and demise of the now-defunct KB Toys. He wasn't. Bain bought the toy company nearly two years after Romney left Bain.
- regeruggedLv 78 years ago
I am voting for Mitt Romney. He is way better than Obama. Despite Obama's boasts, we have about three million less workers now, than when Obama took over. Obama cost the country three million jobs with his socialist policies.
Mr. Romney did what he was paid to do...operate a company successfully.
- How do you think about the answers? You can sign in to vote the answer.
- Texas PatriotLv 78 years ago
Yawwwwwn, bottom line is Bain Capital has created more jobs than Obama.Source(s): Texas!
- DonnaLv 44 years ago
well that's the story reported in Wikipedia, so its not guaranteed to be correct. this was after February 1999 which is the Romney firewall for responsibility for Bain Capital.
- empLv 68 years ago
Yeah that's sooo much worse than being a coke head, far-left, anti-US radical.
If you get to bring up the past, then so do I.
- Anonymous8 years ago
Yawn...much ado about nothing
- Anonymous8 years ago
LOL rjc has a great answer