Photo: WBZ NewsRadio Archive
SOMERVILLE, Mass. (WBZ NewsRadio) — Market Basket CEO Arthur T. Demoulas has been fired by the supermarkets board of directors.
The announcement came on Wednesday morning after a unanimous vote was made.
Demoulas was placed on paid leave back in May due to allegations that he was planning a work stoppage.
A mediation in Delaware was held between the two sides last week in hopes of resolving their issues, however this failed.
In a recent statement Demoulas’ spokesperson Justine Griffin responded to the firing by saying, “Arthur T. Demoulas is deeply disappointed that mediation failed despite his very determined efforts to reach a resolution.”
“As we said on May 28, the Board’s actions are a farcical cover up for a coup. The so-called investigation was designed from the start to falsely tarnish the reputation of Mr. Demoulas and his leadership team.”
“Mr. Demoulas’ passion for the company and his care for the associates remains unchanged,” she concluded.
Reactions to Demoulas’ firing from Market Basket shoppers in Somerville have been negative so far.
“I think its awful, I think he’s the man behind the company, I think it’s a terrible thing to do and I don’t think they’re treating him fairly,” said Joey from Somerville.
“There’s other places to shop, but this is the best place to shop and I think he’s the one for this organization to keep it together,” he continued.
“So while I maybe don’t anticipate there to be a full picket fence outside of Market Basket today, I could very much anticipate a little bit of uproar and hesitancy over the next few days,” said Grace Mellor from Somerville.
The board’s chair says it will not change its operations, profit-sharing, bonuses or culture.
The board also filed a 35-page lawsuit against Demoulas in the Delaware Court of Chancery that lays out the cause for his firing and asks the court to declare his termination valid.
In 2014 Demoulas was forced out of the company by the board who was controlled by his cousin at the time, this sparked a customer boycott and walk out by workers.
The boycott lasted for six weeks and ended with Demoulas and his three sisters taking control of the company.
WBZ NewsRadio’s James Rojas (@JamesRojasMMJ) reports.