Market Basket fires President and CEO Arthur T. Demoulas
By
Ryan G. Beckman
Market Basket fires President and CEO Arthur T. Demoulas
The Market Basket board has voted unanimously to fire Arthur T. Demoulas, president and CEO of the retailer. The news comes more than three months after Demoulas and other employees were placed on paid administrative leave; in the interim the company fired two executives — Joseph Schmidt, director of operations, and Thomas Gordon, grocery director — for insubordination.
The board met with Demoulas on Sept. 3 in a confidential mediation and continued via video conference on Sept. 9. Despite efforts by the board and Demoulas to come to terms, the mediation was not successful.
"Up through his recent termination on Sept. 9, Market Basket’s then-CEO and president, defendant Arthur T. Demoulas, had a long-standing history of exercising his own unfettered discretion as to virtually every important decision at the company — while ignoring and stonewalling the Market Basket board," the company said in an action filed in the Delaware Court of Chancery in connection with the removal.
Demoulas was placed on paid administrative leave May 28 while an investigation was conducted into his conduct, including a review of allegations that the now former CEO began to plan a disruption of the business and operations of Market Basket with a work stoppage.
A stoppage would have echoed the employee walkout and vendor and customer boycott of 2014 on behalf of Demoulas, who at that time had been fired by the previous owner of the company, his cousin Arthur S. Demoulas. That disruption cost the company over a half billion dollars and ended when Demoulas and his sisters bought the company.
"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," said Board Chair Jay K. Hachigian.