THE FACT THAT TOM FOLEY HAS
MYTH V. FACT
TOM FOLEY AND BIBB COMPANY
MYTH: During Tom Foley's Leadership Bibb Company Doubled Its Revenues and Expanded
Foley's web biography (Since updated) touted his success at Bibb Company. An upbeat campaign biography released in 2009 puts his Bibb years in this context: "Tom's record in business is impressive. His primary operating companies, The Bibb Company, T.B. Woods, Inc., and Stevens Aviation, each more than doubled in revenues and each expanded employment by more than fifty percent while under Tom's leadership," said one of his campaign biographies. ("Foley Campaign Material Glosses Over Company's Failure In 1990s", Hartford Courant, 5/21/10)
FACT: Under His Leadership Bibb Company Slashed Jobs While Foley Lined His Pockets
Even Before Foley's Buyout Of Bibb Closed, He'd Struck A Deal To Cut The Payroll By 1,000 Workers. "Even before the buyout closed in October 1985, Foley struck a deal to sell Bibb's unprofitable carpet yarn division for $11.5 million; that lopped the payroll by about 1,000." (Forbes, 9/5/88)
As Bibb Co Continued to struggle and cut jobs, Foley continued to collect massive "management fees." Foley's Greenwich-based holding company, the NTC Group, collected management fees from Bibb of $4 million each year from 1992 to 1994, then $3.4 million in 1995, even as Bibb struggled and began losing money in 1994, according to filings with the U.S. Securities and Exchange Commission. He estimates he personally collected about 20 percent of those fees. ("Foley Campaign Material Glosses Over Company's Failure In 1990s", Hartford Courant, 5/21/10)
MYTH: Tom Foley claims the failure of the Bibb Company, formerly the nation's largest textile mill " wasn't something you can put on my plate."
Foley tells WTNH's Mark Davis: "It was closed long after I was no longer involved with the company, so that wasn't something you can put on my plate." ("Fedele and Foley spar over campaign financing", WTNH News Channel 8, 6/15/08, VIDEO)
FACT: Foley Slashed Jobs, Drove Bibb Company Into Bankruptcy, And Was Forced Out As CEO.
As Chairman And CEO, Foley Drove Bibb Company, Once The Nation's Largest Textile Mill, Into Bankruptcy. "In 1996, Bibb Manufacturing was bleeding red ink, forcing it to file for Chapter 11 bankruptcy protection from its creditors." (Columbus Ledger-Enquirer, 12/6/00).
Foley Was Forced Out As Chairman And CEO As Part Of Bibb's Restructuring Agreement And His Stake In The Company Went From Over 90 Percent To Less Than 5 Percent. "The Bibb Co. has filed its Chapter 11 petition, as expected, with a reorganization plan already worked out. ... Under the agreement, Foley will bow out of both posts and will hold less than a 5 percent stake in the company once the reorganizing is complete. He currently holds more than 90 percent of the company." (Home Furnishings News, 7/15/96)
Bibb Today:
The history of Bibb continued until 1998 when they were bought by Dan River for 16.50 a share. By 2004 Dan River was in the OTC pinksheets and its $750 million dollars in revenues were down to under $100 million. It finally went bankrupt in 2008 with several Pakistani and Indian companies suing.
Of interest. Tracking the losses in Bibb and who made and lost what including the various .
THE BUCK STOPS HERE:
TOM FOLEY WAS THE HIGH PAID CEO
ONE THING WE KNOW FOR SURE IS THAT
TOM FOLEY CAN DESTROY JOBS AND CRIPPLE
A LOCAL ECONOMY
http://www.onlineathens.com/1998/041298/0412.a2bibb.html
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