Photo: WBZ NewsRadio
TEWKSBURY, Mass. (WBZ NewsRadio) — Market Basket’s Board of Directors placed CEO Arthur T. Demoulas and several others on paid administrative leave Wednesday, launching an investigation into allegations Demoulas was planning a work stoppage.
The supermarket chain’s executive committee believes Demoulas and others were considering the stoppage “as improper retaliation for the board’s directives requiring the CEO to work with the board regarding the most basic corporate oversight and to provide the board access to key employees,” according to a press release.
The board also claims Demoulas wants to appoint his children as his successors without considering the opinions of Market Basket executives.
Justine Griffin, a spokesperson for Demoulas, said he was voted out by his three sisters and board members Jay Hachigian, Steven Collins, and Michael Keyes. The others placed on leave include Demoulas’ daughter, Madeline, and son, Telemachus, according to Griffin.
Market Basket shoppers in Gloucester were shocked and saddened by the news.
“He’s done a great job with the store, I hope it doesn’t change,” said one shopper.
“He’s been a great person to work for, according to people who I know, so yeah this does concern me very much,” said another.
One shopper said she knew of a Market Basket employee with cancer, who had to leave the job for a year.
“Artie aid his salary and he paid his health benefits and his job was there when he got back. That speaks for Artie,” she said.
Workers and customers also rallied around Demoulas in the summer of 2014, when he was fired by the board. At the time, the board was led by his cousin, Arthur S. Demoulas.
Hundreds of Market Basket employees went on strike for six weeks, accusing the company of prioritizing shareholder profits over people. The protest led to millions in losses for the company before Arthur S. and the board finally agreed to sell a majority stake to Arthur T., reinstating him as CEO and ending the strike.
Griffin called the current investigation into Demoulas “a farcical cover for a hostile takeover,”
“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 …” Griffin said.
In their press release, the board said Market Basket “will continue to provide its customers superior products and service at prices they have come to expect.”
WBZ’s Kyle Bray (@KyleBrayWBZ) reports.