Claim: “Mitt Romney and Bain Capital drove the profitable company (Ampad) into bankruptcy.”
Ad(s): “Loris and Ampad”
Sponsor(s): Priorities USA Action
Air Dates: May 25 – July 9, 2012
Total Estimated Spending On This Claim: $1,062,739
Markets: Cleveland, Colorado Springs, Columbus (OH), Denver, Harrisburg, Norfolk, Orlando, Pittsburgh, Richmond, Tampa, Wilkes Barre
FactCheck’s Summary: Romney’s opponents blame him for business decisions at the Indiana plant in 1994, when Romney was on a leave from Bain Capital to run for U.S. Senate. […] He officially announced he would run against Sen. Edward Kennedy on Feb. 2, 1994 – five months before Ampad bought SCM in July 1994 from Smith Corona.
SCM was profitable before Ampad bought it. The Indiana plant had net sales of $22.8 million and a gross profit of $2.4 million between Sept. 1, 1993, and Dec. 31, 1993, Ampad’s registration statement showed. But, as a result of the strike, SCM’s net sales had fallen to $10.4 million and profits had turned to a $500,000 loss during that same period in 1994. Nevertheless, Bain’s business decisions at that time helped Ampad to flourish.
Now, it is true that Romney was back in control of Bain when Ampad closed the plant. That happened in February 1995.