An attempt at mediating the bitter dispute between Market Basket’s Board of Directors and CEO Arthur T. Demoulas collapsed over the past week, resulting in the board’s vote to remove the company’s longtime leader. In a statement, Board Chair Jay Hachigian said the vote on Tuesday to remove Demoulas was unanimous. CEO Arthur T. Demoulas was placed on leave in May when the board accused him of planning a retaliatory work stoppage and hired a law firm to investigate. Since then, the fight has repeatedly leaked into public view.Last month, longtime board member Bill Shea was removed shortly before an attorney representing the remaining members accused him of cooperating with the public relations team representing the CEO. Shea said he was ousted on Aug. 7, when Demoulas’ three sisters, who control 60% of the company, voted secretly for his removal.Two other longtime executives were fired in July after the board alleged that they were planning a work disruption, echoing what occurred in 2014 when Arthur T. Demoulas was fired by the previous owner of the company, his cousin, Arthur S. Demoulas. Joe Schmidt and Tom Gordon later alleged that the tumult is the result of a corporate coup being perpetrated by the CEO’s three sisters.Schmidt and Gordon were later subject to a court order barring them from the grocery store chain’s property. An attorney for the board alleged that Demoulas directed them to “lay the seeds for a walkout.” According to Hachigian’s statement, the board and Demoulas met in Delaware on Sept. 3 and the work continued via video conference on Tuesday.”We assure our valued associates and customers that, as we have demonstrated over the past several months, Market Basket will not change its operations, profit-sharing, bonuses or culture, and will continue to offer the best groceries at the lowest prices anywhere in New England—well into the future,” Hachigian said. NewsCenter 5 is asking Demoulas’ representatives for a response.
TEWKSBURY, Mass. —
An attempt at mediating the bitter dispute between Market Basket’s Board of Directors and CEO Arthur T. Demoulas collapsed over the past week, resulting in the board’s vote to remove the company’s longtime leader.
In a statement, Board Chair Jay Hachigian said the vote on Tuesday to remove Demoulas was unanimous.
CEO Arthur T. Demoulas was placed on leave in May when the board accused him of planning a retaliatory work stoppage and hired a law firm to investigate. Since then, the fight has repeatedly leaked into public view.
Last month, longtime board member Bill Shea was removed shortly before an attorney representing the remaining members accused him of cooperating with the public relations team representing the CEO. Shea said he was ousted on Aug. 7, when Demoulas’ three sisters, who control 60% of the company, voted secretly for his removal.
Two other longtime executives were fired in July after the board alleged that they were planning a work disruption, echoing what occurred in 2014 when Arthur T. Demoulas was fired by the previous owner of the company, his cousin, Arthur S. Demoulas. Joe Schmidt and Tom Gordon later alleged that the tumult is the result of a corporate coup being perpetrated by the CEO’s three sisters.
Schmidt and Gordon were later subject to a court order barring them from the grocery store chain’s property. An attorney for the board alleged that Demoulas directed them to “lay the seeds for a walkout.”
According to Hachigian’s statement, the board and Demoulas met in Delaware on Sept. 3 and the work continued via video conference on Tuesday.
“We assure our valued associates and customers that, as we have demonstrated over the past several months, Market Basket will not change its operations, profit-sharing, bonuses or culture, and will continue to offer the best groceries at the lowest prices anywhere in New England—well into the future,” Hachigian said.
NewsCenter 5 is asking Demoulas’ representatives for a response.