Photo snip from WCVB-TV story
Nearly eleven years after being fired by the Market Basket Board of Directors in a power struggle that drew national attention, WCVB-TV (Channel 5) is reporting that Arthur T. DeMoulas is again “on the sidelines.”
The Boston TV station obtained a memo sent to employees earlier today notifying them that “DeMoulas and several others have been placed on leave” pending an investigation.
“While Mr. Demoulas is on leave, an investigation will be conducted that will include a review of credible allegations that the CEO began to plan a disruption in the business and operations of Market Basket,” the memo states, according to WCVB. “The Board believes that these steps were taken by Mr. Demoulas and others in retaliation against the board for requiring that the CEO work collaboratively with the Board regarding basic company operations and plans.”
In a statement released by a DeMoulas spokesperson this evening calls the removal a “farcical cover for a hostile takeover” and indicates another family squabble is at play.
“Today, Mr. Arthur T. Demoulas was ousted from his position as President and CEO of Market Basket by his three sisters and their three appointed board members – Jay Hachigian, Steven Collins, and Michael Keyes. His daughter, Madeline, and son, Telemachus, and several other Market Basket executives were also placed on leave,” spokesperson Justine Griffin said in a statement Wednesday. “Under Mr. Demoulas’ leadership in December of 2024, the company paid off $1.6 billion in debt that financed the purchase of the company in 2014. The company is currently operating at its peak performance and the notion that this board is going to conduct an investigation is a farcical cover for a hostile takeover.”
The Board memo also hints at more family strife, stating “Mr. Demoulas has also resisted an appropriate succession plan for Market Basket, asserting that he has the unilateral right to appoint his children to succeed him without any consideration of the view of the Board or the majority owners of Market Basket.”
Artie T., as he is commonly known, was removed as CEO in 2014 amidst a family power struggle with his cousin Arthur S. DeMoulas. The removal led to a widespread employee walkout and customer boycott that ultimately crippled the supermarket chain’s operations and led to a buyout ending the longtime family fight for control.
The fierce loyalty displayed by the workforce and customer base helped lead to a $1.5-billion settlement that returned Arthur T. to his role running the company, while also becoming a national election talking point and subject for business schools across America.
What precipitated the alleged plan to disrupt operations is not yet clear, but if the same employee and customer loyalty that was on such public display in 2014 still exists, the ability of the company to survive without Artie T. at the helm is once again in serious doubt.
Market Basket, now headquartered in Tewksbury, was founded as a small food store by Athanasios and Efrosini Demoulas in Lowell’s Acre neighborhood in 1917. It eventually moved to Dummer Street and eventually evolved into DeMoulas Supermarket. More stores followed soon thereafter and the company blossomed into the Market Basket chain currently operating 94-stores across Massachusetts, New Hampshire, Maine and Rhode Island.
