RELEASE: We’ve seen this before: Mike McFadden runs from his company’s record
ST. PAUL [10/27/14] — Investment banker Mike McFadden is trying desperately to claim his company, Lazard Middle Market, was not involved in the Smurfit-Stone restructuring deal that resulted in 417 workers in Missoula, Montana, losing their jobs, even though the deal was featured prominently on the company’s website on his watch. Until last week, McFadden and his firm took credit for the Smurfit-Stone restructuring, but now he refuses to take responsibility for it while he was serving as CEO. READ MORE HERE.
Sound familiar? It’s because McFadden has tried this tactic before.
Last May, on his second day as a Senate candidate, McFadden tried to claim his company played no role in the debt restructuring of NewPage Corporation that resulted in 300 workers, including 13 Minnesotans, losing their jobs. That deal was ALSO featured on Lazard Middle Market’s website as a deal McFadden’s company had done.
In the case of NewPage, McFadden just tried to deny his firm did anything on the deal it was currently taking credit for online. But in the case of Smurfit-Stone, all mentions of the deal suddenly vanished from the Lazard Middle Market website entirely only after the Franken campaign highlighted it in its latest ad.
As of this morning, the NewPage deal hasn’t been scrubbed from Lazard Middle Market’s website… yet.
UNDER FIRE FOR HIS FIRM’S ROLE IN THE NEWPAGE RESTRUCTURING, WHICH COST 300 WORKERS – INCLUDING 13 MINNESOTANS – THEIR JOBS, MCFADDEN TRIED TO EVADE THE CRITICISM BY CLAIMING HIS FIRM HAD NOTHING TO DO WITH A DEAL IT BRAGS ABOUT ON ITS WEBSITE
McFadden’s Campaign Tried To Deflect Criticism Of Lazard Middle Market’s Role In Layoffs At NewPage In Duluth By Claiming It Had Nothing To Do With The Deal … According to MPR, “One day after McFadden announced that he intends to challenge DFL Sen. Al Franken, ABM released a web video criticizing McFadden for his role in the restructuring at a Duluth paper mill that resulted in job cuts … But McFadden’s campaign manager, Tom Erickson, said McFadden and his company, Lazard Middle Market, had nothing to do with the restructuring. ABM should take the video down, Erickson said. ‘Lazard Middle Market was not involved in the deal portrayed in the video,’ Erickson said. ‘This is a classic attempt by Al Franken’s allies to distort Mike McFadden’s record in business.’” [MPR, 5/30/13]
… Except Lazard Middle Market Touts Its Role In The Deal On Its Website. According to MPR, “But Lucking said McFadden’s company did play a role in NewPage restructuring. She points to Lazard Middle Market’s website that says NewPage was one of the transactions done by McFadden’s company.” [MPR, 5/30/13; Lazard Middle Market, Transactions]
February 2013: Fresh Out Of Bankruptcy, NewPage Launched A “Company-Wide Reduction Of 300 Employees” That Included 13 Minnesotans. In February 2013, the Duluth News-Tribune reported, “Thirteen employees at NewPage paper mill in West Duluth have been laid off, the result of the company-wide reduction of 300 employees. NewPage Corp., owner of the Duluth mill and seven other mills in the United States, is eliminating 300 of its 6,000 positions at its eight U.S. paper mills because of rising costs and declining demand for its paper products … Each of the company’s locations is reducing its staff by 5 percent, according to Matt Christenson, communications coordinator at the Duluth mill. For Duluth, which had 282 employees before the layoffs, it resulted in the elimination of 13 hourly and salaried positions, he said.” [Duluth News-Tribune, 2/25/13]