A refresher on the longstanding Market Basket family feud

Boston Globe

2 days ago

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A sign outside of a Lowell Market Basket in July 2014.
Joanne Rathe/Globe Staff
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To explain, we have to go back a while.
Market Basket has its roots in a Lowell food store opened in 1917 by Greek immigrants Athanasios and Efrosini Demoulas. Eventually, the couple sold the store to two of their kids, George and Telemachus. George died in 1971, giving Telemachus — father of Arthur T. Demoulas — control of the company.
Fast forward to 1990: George's side of the family — including son Arthur S. Demoulas, cousin of Arthur T. — launched a bitter legal battle against the other side of the family, claiming that Telemachus was swindling George's side of the family out of their shares of the business. The court eventually found in favor of George's side of the family, giving them a narrow controlling stake in the company.
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And yet, in 2008, Arthur T. Demoulas was tapped to lead the company — the result of a wayward board member on George's side of the family that tended to side with Arthur T.
The animosity between the two Arthurs, both alike in indignity, only grew from there — particularly over financial matters. Broadly speaking, Arthur S. and his side wanted bigger dividends for the company's shareholders — i.e., members of the Demoulas family. Arthur T. was in favor of spending on store expansion and generous worker compensation, including regular bonuses and a profit-sharing plan. This fissure led to some combative moments between Arthur T. and the board.
For example: At a 2009 board meeting, Arthur S. Demoulas was scrutinizing his cousin's plan to spend millions on employee bonuses.
'I want to tell you, Arthur, you hired me to run the company, OK; and when you hired me, you hired my management style,' said Arthur T. Demoulas. 'And my management style is not to come back to this board to request and ask for permission.'
At another board meeting, this one in 2012, directors raised the possibility
of a limit on how much the CEO could spend without board approval — a proposal to which Arthur T. did not take kindly.
'I'm running this company with the philosophy, very strong philosophy, there's only one boss on this company. There's not two. There's not three. There's not five. There's only one boss in this company,' Arthur T. said.
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Finally, in June 2014, matters reached a fever pitch, with the board removing Arthur T. from his post. The backlash, to put it mildly,
Employees and customers hold a rally in support of Arthur T. Demoulas in Tewksbury in July 2014.
Suzanne Kreiter
Stuffed giraffes became a symbol of support for Arthur T. Demoulas, representing his tendency to "stick his neck out" for employees.
Suzanne Kreiter
Boycotting customers taped up receipts from competing supermarkets at Market Basket stores.
Joanne Rathe/Globe Staff
Rank-and-file workers, many of whom revered Arthur T., staged massive walkouts. Customers boycotted, taping receipts from Hannaford and Shaw's on store windows. Shelves grew barren. As the company lost millions of dollars each day, the governors of Massachusetts and New Hampshire tried desperately to broker a deal.
Finally, in August 2014, the madness came to an end. Arthur T., along with his three sisters, reached a deal to buy out Arthur S. and other relatives from the supermarket chain for $1.6 billion, and he retook his place as the helm of the company. Employees went back to work, and customers returned in droves.
'You taught everybody that ... Market Basket is a place where respect, honor, and dignity is a way of life,' Arthur T. told workers outside the brand's Tewksbury headquarters after the deal was reached. 'This was not about a family conflict or a Greek tragedy, but more about fairness, justice, and a solid moral compass that united the human soul.'
Arthur T. Demoulas addresses workers outside of Market Basket headquarters in Tewksbury on Aug. 28, 2014.
Jessica Rinaldi/Globe Staff
Since then, Arthur T.'s tenure has continued with relatively little fanfare. The company has flourished, adding stores and growing revenue, and the Great Market Basket Uprising of 2014 became the stuff of New England lore.
Will history repeat itself? Only time will tell.
Dana Gerber can be reached at