Market Basket Board suspends CEO Arthur T. Demoulas; he hits back with ‘hostile takeover' jab
CEO placed on leave as Board cites
corporate oversight dispute
The Board of Directors of Market Basket has suspended Chief Executive Officer
Arthur T. Demoulas
and several other senior executives, effective immediately, amid an
internal investigation
into actions that allegedly threatened the company's operations. The decision follows what the board described as credible allegations that Demoulas planned a work stoppage as retaliation for the board's directives regarding governance.
According to the board's executive committee, Demoulas resisted cooperating with oversight measures and opposed the development of a formal succession plan, instead asserting unilateral authority to appoint family members as successors without board input.
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The company's directors emphasized the importance of maintaining stable operations during a period of economic uncertainty. 'Market Basket stores provide a place that our local communities consistently count on for both their livelihoods and daily needs,' said Director Steven J. Collins. 'The board has a responsibility to safeguard the company's effective operations now and well into the future.'
Demoulas will remain on full salary and continue to share in company distributions while the investigation proceeds. During the suspension, Market Basket will be operated by its existing management team, which the board states will ensure that the chain's 90 locations continue to function without disruption.
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Demoulas responds, calls investigation a '
hostile takeover
'
In a statement issued through spokesperson Justine Griffin, Arthur T. Demoulas criticized the board's actions, characterizing the investigation as an attempt to seize control of the company.
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'The purported investigation is nothing more than a farcical cover for a hostile takeover,' Demoulas said. 'Three of my sisters, together with three board members they appointed Jay Hachigian, Steve Collins, and Mike Keyes voted to oust me, my daughter Madeline, my son Telemachus, and several other senior executives.'
Demoulas added that under his leadership, Market Basket paid off $1.6 billion in debt in December 2024 and is 'operating at the top of its game.'
The board reiterated that there will be no changes to employment, benefits, or ownership for the company's associates and that customers can continue to expect the same level of product quality and value.
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