MANILA, Philippines – After Robert Kiyosaki of the bestselling financial help book “Rich Dad Poor Dad,” another author of self-help business books has filed for bankruptcy.
Monitor Group, a consulting firm co-founded by Harvard Business School’s Michael Porter, has “officially bit the dust,” according to a report from Forbes. While the article did not specify the reason for the bankruptcy, it cited that “self-inflicted wounds are the likely culprit.”
The author, contributor Peter Cohan, noted that Monitor Group has been linked to former Libyan dictator Moammar Gadhafi last year.
“While that publicity was no doubt painful, the Journal reports that Monitor’s financial difficulties became acute in 2008 when its ‘revenues shrank and liquidity tightened,’” Cohan wrote.
“In response, Monitor’s partners wrote checks of $4.5 million to the company and did not take $20 million in bonuses in 2009. It also borrowed $51 million – ‘by issuing notes to private equity firm Caltius Capital Management,’ according to the Journal.
“Things started getting tight again this year. In September and October 2012, it could not pay the rent at its headquarters on the opposite end of Cambridge (near Boston’s Museum of Science) that it moved to after I left. Nor could it make the most recent payments due on its Caltius notes. Deloitte Consulting acquired Monitor’s assets for $116.2 million and the Boston Globe reports that it may lay off 235 of its 1,200 employees.”
Cohan, who used to work for Monitor, said he does not know exactly how the company ran into financial problems.
“But one thing I know for sure is that Monitor did not follow all of Porter’s ideas when it came to running the firm. The most important idea that Monitor neglected is that companies need to choose how they will win in the marketplace,” he wrote.
Some of Porter’s books include “How Competitive Forces Shape Strategy,” “Competitive Advantage,” “Towards a Dynamic Theory of Strategy,” and “The Five Competitive Forces That Shape Strategy.”
Kiyosaki, the author of the “Rich Dad Poor Dad” financial help books, filed for bankruptcy last month after one of his companies lost a $24-million court judgment, according to a report from the New York Post.
Ostensibly based on Kiyosaki’s life, the first “Rich Dad Poor Dad” book was published in 1994 and was followed by 11 others.