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Market Basket's new family food fight

Market Basket's new family food fight

Axios29-05-2025

The words "Market Basket" either mean nothing to you or represent your most beloved brand.
That latter camp is mostly comprised of New Englanders who view the grocery chain as akin to the Red Sox. Or even church. Seriously.
And its future is now in flux.
Flashback: Some outsiders may remember Market Basket as the subject of a contentious ownership fight in 2014 — between two cousins both named Arthur Demoulas — which included employee protests (often on their own time) and customer boycotts in support of "Artie T."
The dispute was resolved when Arthus T. Demoulas and his side of the family bought a control stake from Arthur S. Demoulas, in a transaction that included around $1.6 billion in debt financing from top Wall Street firms (which got paid off at the end of last year).
Fast forward: The Demoulas are feuding again, although this time it's siblings instead of cousins.
Market Basket's board last night put CEO Arthus T. Demoulas and several other employees (including his son and daughter) on paid administrative leave, as it investigates his conduct.
The board, which includes an unaffiliated private equity exec and PE-focused lawyer, was appointed by the majority shareholder group that includes Arthus T. Demoulas and his three sisters.
Behind the scenes: I'm told that the board had grown frustrated with its lack of access to information, including things like budgets and succession plans.
"They would learn about new store openings in the paper," a source explains.
Last August it gave Demoulas an ultimatum about increased transparency, but feels he didn't comply. Instead, the board believes that Demoulas was planning a work stoppage.
It also appears that the three sisters support the board's decision, perhaps because it seems like he was planning to have his kids eventually take over.
What he's saying: Via a spokesperson, Demoulas issued a statement saying he was "ousted" and that the investigation is a "farcical cover for a hostile takeover."
His spokesperson didn't respond to repeated requests for further comment.
Look ahead: The immediate question is if employees once again will protest in support of their vaunted CEO, but the longer-term one is what this means for a chain of nearly 100 locations in an era of supermarket consolidation.

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