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This only shows how much the organization needed Gingrich to stay afloat, the campaign says.
First his campaign. Now his “empire.”
Newt Gringrich’s think tank on health care is going belly up, according to The Associated Press.
The news agency says the Gingrich Group, of which the best known entity is the Center for Health Transformation, filed yesterday for Chapter 7 bankruptcy protection in Atlanta.
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The story was first reported by The Atlanta Business Chronicle. According to The Atlanta Journal Constitution, Gingrich Group LLC listed debts of $1 million to $10 million and assets of only $100,000. Newt and his wife Callista are listed as creditors.
According to The Wall Street Journal, the organization charged clients up to $200,000 in membership fees in return for advice on health policy.
The organization’s failure may reflect poorly for some on Gingrich, whose campaign has foundered since early this year.
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But according to Stefan Passantino, an attorney for the Gingrich campaign, the bankruptcy actually spoke well of Gingrich’s management as he had not been involved in operations when revenues went south.
“This doesn’t show some leadership or management failure,” The Journal quoted Passantino as saying. “It shows he was integral to the organization.”