Wayfair is a similar comparison. Wayfair represents a single consolidated site compared to their 200+ domains previously (under the CSN brand). I'm familiar with them since we did similar things back in the day. I'm not sure how applicable it is because we used to do the same mega-spam footers they did. The bulk of their problem (long before Penguin) was that they were what is best termed as incestuous linking schemes. What crib bedding has to do with pool covers is anybody's guess. What likely tripped them up was, back in the day, we all linked keyword rich links to the sites without any regard to relevance. Once Google catches that you have to get rid of it. A single domain is far easier to SEO for, but they probably ultimately consolidated for the sake of advertising (their ads are everywhere). But (on point with the OP) Hayneedle did 301 their old domains to their new consolidated domain, and obviously for SEO benefit. Example
I don't think it's as big a deal now because link wheels like that are long gone. I have also seen other smaller networks arise (i.e. Soap) that link between properties (in the header no less) and do not nofollow anything. It's worth noting that these networks are poorly related (camping vs diapers vs clothing) so I don't think there's any real focus on SEO there (or they just don't care). At best these links carry some minor boost but at worst they carry no weight at all. Either way, if there was a penalty it doesn't show up.
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