Bain Capital accused of raiding KB's piggy bank (March 27, 2006--Boston Business Journal)

[antigop]

http://www.bizjournals.com/boston/stories/2006/03/27/story2.html

Bain Capital LLC and the former management team at KB Toys Inc. are being sued in a Massachusetts court for allegedly stripping more than $121 million out of the toy retailer's "piggy bank" and then allowing the struggling company to spiral into bankruptcy.

The January suit is just the latest twist in the five-year saga involving KB and Bain, which purchased the toy chain for roughly $305 million in 2000. At the time, Bain paid around $20 million in cash and borrowed the remainder to acquire KB from discount retailer Big Lots Inc. of Columbus, Ohio.

Today Big Lots is but one of a handful of creditors, including game and toy maker Hasbro Inc. (NYSE: HAS), represented by the so-called Residual Trust of KB Toys Inc. Through its suit in Suffolk Superior Court, the group is hoping to recover $114 million in what it alleges are ill-gotten gains collected by Bain and KB's former officers.

Bain purchased KB in 2000.

[rfranklin]

1. Retroactively not Mitt's fault...

I am hoping to get my speeding ticket dismissed. I retroactively gave up ownership of the car.

[Duer 157099]

2. This is personal now

I used to love KB Toys. I remember when they went out of business and I didn't understand how that could happen. Now I know. Grrrrrr!

[SDjack]

3. Faces of workers, protesting rMoney and demanding the return of

their pensions + damages. Hope rMoney appears with Ann and boys in an attempt to deflect the charges. I want to see their "pride" as he gives the Nixon statement: "I am not a crook."

[Flatpicker]

4. I

Worked there at the end.
I wasn't a pretty sight.

We didn't understand either, because locally we had a great year.

[DainBramaged]

7. It was a weekly stop for my daughter and I when we went to the mall

They may have been a little too expensive, but it was a fun place to shop.


Fucking Romney.

[ohgeewhiz]

5. Let's make this get nasty about 3 weeks before the election, and

last up until the election. Can you imagine? Every night hearing more stories about Romney's firm making an American toy retail chain go belly-up, and refusing to pay legal debts it had assumed?



"Bain purchased KB in 2000" So Romney's name is still on the corporate forms, and he can be ordered to appear in court! On camera! That would be fun!

[antigop]

6. kick n/t