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High Point showroom investor getting unflattering national attention

Saturday, December 24, 2011
(Updated 5:46 pm)

HIGH POINT -- One of the key investors in the company that bought the three main showrooms at the High Point Market is receiving a flurry of publicity in the Republican presidential race, though it isn't particularly flattering.

Bain Capital Partners, which is part of the International Market Centers consortium that purchased the showrooms in May, is being criticized because of its ties to former Massachusetts Gov. Mitt Romney. The Republican presidential candidate made his fortune in part through Bain, which he co-founded nearly 30 years ago. Romney left the company in 1999.

Romney's political rivals, such as former U.S. House Speaker Newt Gingrich, recently have blasted Romney for taking actions through Bain that they say cost workers jobs.

During a campaign event in New Hampshire earlier this month, Gingrich criticized Romney for making millions of dollars through Bain as the company sometimes laid off people as part of restructuring businesses. Romney, in turn, has defended his work at Bain, proclaiming the company is a net creator of jobs through its investments.

The top executive for International Market Centers said he's confident in the positive role Bain will play with the company and High Point Market. Bob Maricich, chief executive officer of International Market Centers, said he isn't worried that political attacks on Romney through Bain will have a ripple effect.

"Anybody who's a business leader understands when you are part of over 300 companies (like Bain), there are successes and failures. But their overall track record is just unprecedented as a good one," Maricich told The High Point Enterprise.

Having Bain involved in the High Point Market will be positive in the long term for both the trade show and city, Maricich said.

"There's no scenario where less is more in our business model," Maricich said.

A local political analyst said the inclusion of Bain into the Republican presidential debate raises the possibility of more scrutiny of the company's deals, such as the one with International Market Centers. There's precedent with other companies, said Matthew DeSantis, professor of political science at Guilford Technical Community College.

One example from the recent past is Halliburton Co., the energy business that was thrust into the limelight 11 years ago when its former executive, Dick Cheney, became vice president.

"All of a sudden, Halliburton became a nationally known corporation when it had been pretty much faceless. Because of Dick Cheney, everybody was looking at their deals and what they are doing," DeSantis said.

Bain Capital Partners

International Market Centers became the key player in the U.S. home furnishings field when it purchased the three main showroom complexes at the High Point Market and the World Market Center in Las Vegas in a $1 billion deal in May. The High Point Market properties bought by the company are the International Home Furnishings Center, the former holdings of Merchandise Mart Properties Inc., including Market Square, and the former assets of Showplace. The investors in the historic deal include Bain Capital Partners, Oaktree Capital Management, the Related Companies and Bassett Furniture Industries Inc. World Market Centers owns and operates 18 showroom buildings covering 11.5 million square feet in the two cities.

Comments

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Panacea

December 24, 2011 - 8:59 am EST

In the case of Halliburton, someone needed to do look at what they were doing, especially when they were awarded a government contract before the Iraq War in which they were the only ones allowed to bid.

rmacz

December 24, 2011 - 1:10 pm EST

Haliburton already had an office in Tehran in 2001. This is old news. Haliburton was ready to move fast. True, open bids would have been better, but war on terror does not wait for open bids. Also, they did the job at a reasonable price considering the risk factor. That is a fact, and is not even arguable.

Haliburton did an excellent job. Dick Chaney did a great job at Haliburton, and George Bush will have a legacy to proud of.

Panacea

December 24, 2011 - 1:45 pm EST

What have you been putting in your eggnog?

Halliburton overcharged the Pentagon for fuel. We had no reason to rush an invasion of Iraq. The process could have gone out to bid.

They also bear responsibility for the Deepwater disaster. Dick Cheney may have done a great job for Halliburton, but Bush does not have a legacy to be proud of.

rmacz

December 24, 2011 - 4:24 pm EST

All of your opinions are baseless. Let me be clear. Saddam did not hold up his end of sixteen UN resolutions. War was inevitable. A lot more needed to done than bomb an aspirin factory. This is old news.
http://georgewbush-whitehouse.archives.gov/infocus/iraq/decade/sect2.htm...
George Bush had a coalition of 47 Nations. That's a lot of oil to haul for. He was the right President for the job. Halliburton responded to the demand fast.

Obviously, we're not drinking the same eggnog...ha!

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