A long-running family feud is once again roiling Market Basket, an iconic New England grocery chain with at least 90 stores.
If you’re not familiar with the stores, Market Basket is “a whole thing in Greater Boston,” as member station WBUR reports: a cultural icon beloved for high-quality foods at reasonable prices.
The supermarket chain’s roots extend to 1917, when Greek immigrant Athanasios “Arthur” Demoulas opened a store in Lowell, Mass.
Two of Athanasios Demoulas’s sons grew Market Basket into a regional supermarket chain, as WBUR’s Curt Nickish reported on NPR in 2014.
“Mr. Demoulas, ATD, is the heart and soul of Market Basket.
An iconic New England grocery chain with at least 90 locations, Market Basket, is once again embroiled in a long-running family feud. Arthur T., the CEO, was appointed by the company’s board. Demoulas is on leave, ten years after an employee strike partially prevented an attempt to fire him.
In the present dispute, the board announced its decision against Demoulas, citing disagreements over succession plans and oversight issues.
Market Basket is “a whole thing in Greater Boston,” according to member station WBUR, a cultural icon renowned for providing premium foods at affordable costs, in case you’re unfamiliar with the stores. The establishment of the supermarket chain dates back to 1917, when Athanasios “Arthur” Demoulas, a Greek immigrant, opened a store in Lowell, Massachusetts. The company now has operations in Maine and New Hampshire as well. However, family arguments have continued as it has expanded.
As WBUR’s Curt Nickish reported on NPR in 2014, two of Athanasios Demoulas’s sons expanded Market Basket into a regional supermarket system.
For decades, their sons have been at odds with one another. The two engaged in a fistfight in court during their epic legal battle in the 1990s. “..”.
What is the conflict at the moment?
According to a statement released by Market Basket’s executive committee, Demoulas and a number of staff members were placed on paid leave “with immediate effect while an investigation is conducted into the CEO’s conduct.”. “..”.
After requiring the CEO to cooperate with what they described as “the most basic corporate oversight,” the board accused Demoulas of planning a work stoppage to disrupt the business, which they believe is “improper retaliation.”. “..”.
In addition, the board stated that “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 consulting the board.
Demoulas says what?
An advocate for Arthur T. Demands for comment from NPR were not immediately answered by Demoulas. But spokesperson Justine Griffin described the board’s claim of an investigation as “a farcical cover for a hostile takeover” in a statement that was cited by WBUR and other local news outlets. “.
“Griffin stated that the CEO’s leave was put in place by Demoulas’ three sisters and their three appointed board members,” WBUR reported. Additionally, she allegedly stated that the action against Demoulas coincides with the company’s financial performance.
An Arthurian story about power struggles.
More than a decade ago, turmoil within the family that owned Market Basket made news when Arthur T. He was pushed out as CEO by Demoulas’ cousin, Arthur S. Demoulas. The two are Athanasios “Arthur” Demoulas’s grandsons.
In 2013, when the conflict between two sides of the family started to escalate into a direct struggle for power, Dave Solomon of the New Hampshire Union Leader told New Hampshire Public Radio, “There has been a certain amount of mistrust between the two factions for years at this point.”.
In the summer of 2014, Arthur S. Demoulas was able to remove his cousin, the CEO, whom many workers referred to as “ATD.”. However, Arthur T.’s loyal customers and staff boycotted the change, which sparked weeks of unrest. Demolas. A significant number of Market Basket’s over 25,000 employees quit their jobs, which was shocking given that the business was not unionized and that the employees were assisting a CEO in taking back control of what was then a multibillion-dollar company.
Employees mentioned their connections to Arthur T. at the time. Demoulas, a supportive workplace culture, and concerns that new executives may cut their bonuses.
Mr. Demoulas, ATD, is Market Basket’s central figure. “He is the foundation of this place,” Jamie Cunneen, the store manager, told Nickish in 2014.
Demoulas was successful in regaining the CEO position after almost two months. He and his siblings had proposed a buyout from the group headed by his cousin, allegedly worth over $1.05 billion, in order to take over the majority of the business.
This week’s message from the board states that Demoulas himself owns a minority stake in the family business.
The board stated that the CEO’s on-leave status would not impact the company’s ownership structure, nor the compensation and benefits offered to employees, including their profit-sharing plan.
