CINCINNATI (TDB) -- This three-minute YouTube clip has been around since mid-2009. The title says it is a Totes Isotoner (you can access corporate website 'about us' link here) executive addressing a trade show in Taiwan. The trade show was sponsored by Enson International Ltd., (click to access the company's website), a Taiwan company that built a plant in China's Guang Dong Province to make umbrellas for Totes. Mitt Romney's venture capital firm was in control when contract manufacturing began in China. Enson says it has 500 workers in the Chinese factory.
The exec in the video is said to run international procurement for Totes and he is speaking Chinese. Totes Isotoner, based in suburban Cincinnati, was purchased in 1994 by Bain Capital Inc., the buy-out firm founded by Republican Presidential candidate Mitt Romney. Totes is a successful company. Manufacturing was moved offshore and contracted out . Umbrellas have been made in China since shortly after Bain Capital acquired its majority stake in Totes. Bain sold its interest in Totes in 2001. As he campaigns for president, Romney describes himself as a jobs creator. But he hasn't been talking about creating new jobs in China. Do American workers lack the abilities to make umbrellas? Or do the Chinese offer cheap labor?
Reprinted below is a 1994 Wall Street Journal article about Bain Capital's acquisition of Totes:
Totes Majority Stake Bought by Bain Capital
208 words
28 June 1994
The Wall Street Journal
J
B4
English
(Copyright (c) 1994, Dow Jones & Co., Inc.)
BOSTON -- Bain Capital Inc., an investment concern, expanded its interests in the apparel industry by buying a majority interest in Totes Inc., a maker of umbrellas and rain gear.
Both companies declined to comment on the value of the transaction and on the number of shares sold. Closely held Totes, based in Loveland, Ohio, reportedly has annual sales of about $175 million.
Totes had been seeking "outside equity participation" in the wake of a previously announced restructuring plan, said Totes spokesman David Eden. The company has been engaged in a "right-sizing" plan since March 1992, which has included a refocusing on its core rain-gear business and has resulted in layoffs.
In 1993, Totes retained Wasserstein Perella & Co., a New York investment banking firm, to seek a potential investment partner. Totes considered several financing options, but decided to negotiate with Bain Capital as it was "looking to do something long-term," said Mr. Eden.
"The bank knew that Totes fit our profile," said Robert F. White, a Bain spokesman. "We're always looking for good consumer-product companies to invest in."
Bain Capital, which manages equity investments totaling more than $500 million, has invested in several retailers and manufacturers.
In answer to your question, the Chinese offer cheap labor. In answer to your other question, Americans can manufacture umbrellas. Cheap labor=lost jobs.
ReplyDeleteOffshoring and outsourcing by American corporations must be debated in this 2012 campaign. We have shipped so much capital to China they are getting rich off of us. We have shipped so many jobs to China we are getting poorer. The Republicans worry about our government debt held by China, the Democrats worry about the American jobs taken by China. Both are right to worry but why won't anybody do something.
ReplyDeleteWhat has President Barry done about losing jobs to China? What has he done to create jobs at home? We're worse off now than we were before he was President. Hope and Change my ass.
ReplyDeleteYou mean "Whine me, dine me," right? The salutation you are posing under isn't even an original name. You stole it from a Cincinnati blog. Displays either an IQ shortfall or an ethics blindspot. Cussing on behalf of your political philosophy also appears to be crass and stupid, that really gains supporters.
DeleteRepublican outsourced astro-turfing operations must be desperate to hire your ilk. How's the weather in India? Paid by the word? Do you carry a totes umbrella to keep the sun off your head?
Awwww, did somebody hurt your wittle fi fis?
DeleteThere there, class. Corporations are people, too.
DeleteEven under Obama, corporations and even his trusted ally Immelt (GE) continue to ship jobs over seas. How much money has the current administration thrown at the Solyndras of the world? Even Obama's business advisory group is revolting against Obama's policies which have proven to be very flawed.
ReplyDeleteObama just selected former Bain executive Jeff Zients to head the OMB.
ReplyDeleteObama's defense policy forces local plant to close, almost 100 jobs lost.
ReplyDeleteDemocrats received more Bain money than Republicans.
ReplyDeleteObama's administration outsources a military contract to build military aircraft to Brazil. Obama's administration outsources jobs to Brazil.
ReplyDelete