Capitalism’s Ugly Face: Why It Needs Regulations

My wife’s family lived in Poland, New York, on a dairy farm when I met her.  Their home was located in the midst of fields on which the Holsteins grazed surrounded by other similar dairy farms. I learned that running a dairy farm offered little relaxation time. It was a three hundred sixty-five day a year job.

Poland is located in Herkimer County. Herkimer is situated about 15 miles south. After her folks died her sister lived there in a house adjoining the farm. It is still owned by her nieces and nephew. Each year my wife would go to Poland two or more times. She loved the country and had a large garden there. When she came back it was not before she stopped at the Heidelberg Bakery and Café in Herkimer. She would buy a dozen or more loaves of bread which we savored.

On Easter, 2019, the bakery had a fire and closed. Then after searching about we learned that some of the local grocery stores carried the bread which gave us access to it. Just recently they no longer had it. Inquiring we found it was not longer delivered. We went to the site of the Heidelberg Bread Company and found the following notice: “To our valued customers: Sadly our distributor, Koffee Kup, has abruptly closed. This will create distribution outages throughout the northeast. Please be reassured that we are diligently working on alternative distribution and hope to be up and running again in the next two to three weeks. Please check back for updates!! In the meantime, please feel free to use our online store to purchase our bread.”

What happened that a company “abruptly closed.” 

American Industrial Acquisition Corporation (AIAC) bought the Koffee Kup company which had about 250 employees in Vermont and another 100 in Connecticut on April 1, 2021.  AIAC bills itself as “a privately held industrial investment portfolio with a long term mission to build enduring businesses.” It states it was established in 1996. It notes: “our portfolio consists of 78 manufacturing and distribution sites with over 8,500 employees in 24 countries in North America, Europe, and Asia. Total annual revenues exceed $1.6 billion.”

Now I assume AIAC has all the financial experts that delve deeply into the finances of the companies they purchase. A thorough research is done, due diligence performed, and these experts do not just make their purchases without a full understanding of what the prospects of the company will be.

Koffee Kup had been losing money over the years which was well known. Its owner “considered multiple potential buyers before selling to” AIAC.  The CEO of Koffee Kup said  it was motivated to sell to AIAC because “AIAC had committed to investing $4 million in Koffee Kup before acquiring the bakery April 1.”

Now here is the sinister part. On April 26, 2021, “Workers, hundreds of whom were left without jobs, said they were notified of the closure upon arriving for shifts. “You need to go empty your stuff, get your personal belongings and not report to work anymore.”” 

AIAC adviser Jeff Sands explained the closing noting: “that Koffee Kup had suffered financial losses in each of the past four years. The bakery had been unable to find a new investor “willing to commit the resources necessary to bring the company back to health.” But according to the CEO of Koffee Kup that was what AIAC had promised to do noting there were three other companies willing to buy it. Certainly AIAC before it bought it knew of the financial losses and using that as an excuse to close it makes no sense.

It is difficult to ascertain what AIAC will do with its purchase. What is certain is that at least 350 workers were thrown out of work without notice. Some received checks for their last week and unused time off. Those checks would bounce. No doubt AIAC with its 1.6 billion annual revenue will do well with the purchase; folks with little will suffer. That’s one of capitalism’s big downsides. Unrestrained the little guy is not protected. That is why we do need to regulate tawdry actions like those of AIAC.

 

13 thoughts on “Capitalism’s Ugly Face: Why It Needs Regulations

  1. “No thanks! How many failing distributors is the govt. supposed to subsidize, and why?”

    Ask Xi Jinping.

  2. Remember, America’s Repubican form of Government Capitalism made America the richest, safest country in the world, with ample benefits, enjoyed by hundreds of million Americans and the envy of hundreds of millions worldwide who would like to migrate to the good old USA.

    You, know, you cannot pass a law preventing an employer from letting go an employee, for a myriad of fair, just reasons.

    Bigger Guys who manage billions of dollars are success stories for many subsidies or purchased smaller corporations, but in life, some few will not benefit.

    The solution decrease the size of FED and STATE governments, keep them out of the private sector’s businesses . . .Our Founding Fathers’ wanted Government LImited, to provide defense and safety and welfare and in the USA we do so fairly and admirably, and we have enacted public health, environmental, OSHA, Fair Trade, Fair Business Practices, across the board.

    Of course, liberals always want more intrusion by the FEDs/STATE, by Big Brother. Liberals want a socialistic Stalinistic Fascistic State that makes sure no businesses goes bankrupt, because all work for and are indepted to the STATE under leftists’ visions.

    That government that governs least, governs best.

    A friend said he knew his boys would climb trees, jump off bridges and quarries, and play tough sports, boxing,, football, wrestling, basketball, hockey . . .contact spors . . .and this good Father knew his boys would get bruised and beyond broken bones, get their hearts broken. Some of our sons will be laid off, fired, or hired by businesses, large and small, in the private sector. COMPETITION is best; Free Markets, get the Big Government out of our busineeses; Downsize Big Government, wherein most public employees think they rule and forget their spending the private sector’s tax dollars.

    Live free, live free of Orwellian Big Brother, Big Government, Animal Farm, live free of the FEDs oppression . . .set the world aflame with heartfelt earnestness for the better, by a free people, unshackled by the oppressive, intrusive, Big Gov.

    1. “Remember, America’s Repubican form of Government Capitalism made America the richest, safest country in the world, with ample benefits, enjoyed by hundreds of million Americans and the envy of hundreds of millions worldwide who would like to migrate to the good old USA.”

      Thank you Lazlo Toth.

        1. Thanks. I might have to buy that one. I’ll put it next to The Bad Popes in my bookcase.

    2. Bill

      Wow!

      In other views…..

      https://www.powells.com/book/into-the-buzzsaw-leading-journalists-expose-the-myth-of-a-free-press-9781591022305?partnerid=36849&p_ti

      Into the Buzzsaw: Leading Journalists Expose the Myth of a Free Press
      by Kristina Borjesson

      Also see

      https://www.globalresearch.ca/video-dr-meryl-nass-details-possible-fda-cdc-crimes-petition-revoke-eua-covid-vaccines/5746534

      Video: Petition to Revoke the Covid-19 Vaccines: Dr. Meryl Nass

      Massive malfeasance by the CDC and FDA that cost lives

      By Dr. Meryl Nass and Kristina Borjesson
      Global Research, May 30, 2021
      Region: USA
      Theme: Law and Justice, Media Disinformation, Science and Medicine

  3. Off topic: There’s a new documentary called “My Name Is Bulger.” Since it appears to contain interviews with Billy Bulger and Catherine Grieg, I assume it’s sympathetic. I suspect we’ll all be long gone before the last shot is fired in this family saga.

    1. Dan:

      Interesting. I was interviewed by the producers of the documentary. I have no idea what I said since it was two or three years ago. I hope I was left on the cutting floor.

  4. Matt
    I think you may be onto something.

    In other news

    Thursday, May 27, 2021
    Dr. Sin Hang Lee approved to do specialized acute Covid testing to fully sequence virus from every patient. 2 minutes/WTNH Connecticut
    https://www.wtnh.com/news/health/coronavirus/new-type-of-covid-test-developed-in-milford-lab-samples-virus-infected-cells-for-more-accuracy/

    Dr. Lee runs the Milford Molecular Diagnostics lab in Milford, Connecticut. He is an extraordinarily dedicated physician interested in truth and scientific accuracy. He plans to run 5 or 6 tests on each individual sample to be positive he is obtaining an accurate, proven result.

    Not only will his test inform you about variants and mutations in Covid, but it will clearly separate real Covid cases from everything else.

    Dr. Peter McCullough’s best interview yet–MUST WATCH! 1 hr 45 minutes
    https://www.bitchute.com/video/tt0yyvUtKFfs/

    Plenty of information about treatment.

    How a few doctors created a system to treat patients outside of the standard medical system, managing 10,000/day

    How the federal agencies worked against the interest of Americans

    Posted by Meryl Nass, M.D.

  5. You know, this story doesn’t even make sense. If the bakery burned down, how is it that there was bread in distribution channels for any length of time, and then, after that, where was this bread supposed to come from? Doesn’t pass the smell test.

    Regarding regulating capitalism: you tell the story of a business that was circling the drain, and an investment group bought it, presumably to try to make something of it or the assets, and they then hastened its demise. How is this different than just letting it go out of business on its own? Do you expect inverstment groups to be charitable?

    What regulation do you propose that would make this right in some way? What makes this wrong as it is?

    “I don’t like what happened in business, government should step in and fix it.” No thanks! How many failing distributors is the govt. supposed to subsidize, and why?

    1. John:

      The bakery that burned down has nothing to do with the story in chief. It was where we used to get our bread in Herkimer New York. Read the article again. The company that makes the bread owned the bakery, the bread was made at another location.

      I did not ask for regulation or government intervention. I said there should be regulations that prevent tawdry actions by AIAC which appeared to me to buy the company under false pretenses. The investment group obviously did not intend to do other than shut it down since due diligence would have shown it what its condition was, it made a promise to try to keep it going and reneged on it, and within a month closed it. The business did not have to close, there were others interested in buying it.

      Your question points out the problem with unfettered capitalism. You ask “do you expect investment groups to be charitable?” I expect them to have some ethics. I do not believe buying a business with hundreds of employees under false pretense and then firing the employees is ethical. As for being charitable no one asked for anything from them. If you don’t see the wrong then I cannot help you.

      I don’t know who you are quoting in the last sentence. I do believe there should be a penalty on investment companies that misrepresent their purpose and then cause the loss of 350 employees.

Comments are closed.