President Obama’s re-election campaign is continuing its attacks on Republican Mitt Romney as a job killing profiteer during his career in private equity, launching a web video Monday centered on the experience of workers at Ampad, a paper company.
Bain Capital, where Romney was CEO, bought Ampad in 1992, mostly with borrowed money, then acquired other paper companies over the next several years. By 1999, the company carried $400 million in debt, and it went bankrupt in 2000. Bain realized a profit of $100 million on its initial $5 million cash investment.
The latest Obama video focuses on a paper company in Marion, Ind. that Bain-controlled Ampad bought in 1994; all 250 workers were immediately fired and made to reapply for their jobs – at much lower wages and benefits. That plant closed one year later. The video features interviews with several workers who saw their middle-class lives fall apart.
Romney, who was governor of Massachusetts from 2003-2007, touts his Bain experience as an important credential as a job creator. Obama strategists believe there is a darker story: of a man who pursued profits at the expense of workers, an enemy of the middle class.