Latest news with #ArthurS.Demoulas
Miami Herald
a day ago
- Business
- Miami Herald
Large supermarket chain faces massive boycott
Change is hard, and many people just don't like it. As we grow older, it's kind of harder to break our habits. And that makes sense, because our habits have been with us for the long haul, wiring us in a certain way. When it comes to changes in a workplace, that's when things become even more difficult. About 37% of employees resist organizational change management, according to Oak Engage's 20223 Change Report. Related: Costco makes key moves to protect prices from tariffs Reasons include a lack of trust in leadership, lack of awareness around the reason for change, and fear of the unknown. When popular food and beverage brands make sudden changes, it can be fatal for the name. It's the same for large corporate retail chains, which are known to experience massive boycotts, either by customers or employees. Recently, several retail giants faced large protests. Walmart experienced a nationwide customer boycott, organized by The People's Union USA, over the retailer's alleged contribution to economic corruption. Then customers boycotted Target and Dollar General over DEI (diversity, equity, and inclusion) rollbacks. Now, one more supermarket chain with 95 locations seems to be joining this trend. Market Basket is a popular, old-school store with a loyal customer base attracted to low prices, a diverse selection of products, and a unique shopping experience. There are no self-checkouts here, on purpose. The company prides itself on offering warm, person-to-person customer service and checkout. Its core value and motto? A well-known "more for your dollar" slogan. However, there is another reason Market Basket is famous, and that is a history of ownership, leadership, and family feuds. Things came to a head in 2014, gaining international attention. More Retail: Huge retail chain closing more stores soon (locations revealed)Struggling drugstore chain announces second bankruptcyBeloved discount grocery chain has massive US plans In June 2014, Arthur T. Demoulas was fired as Market Basket's CEO by his cousin, causing an employee and customer revolt to get him back. Workers were dissatisfied with the new management, so they walked out and staged a protest. Loyal customers decided to support employees, boycotting the grocer by going to different stores and then taping their receipts from other retailers on Market Basket's store windows. The boycotts helped Arthur T. Demoulas reach a $1.6 billion deal to acquire the company's shares from rival family members led by his cousin Arthur S. Demoulas. One day after the agreement, employees and customers quickly came back to the stores. Last week saw another controversial management move. Market Basket's CEO Arthur T. Demoulas was placed on paid leave on Wednesday, May 28, by the company's board of directors. The board launched an investigation into the CEO's conduct to review a "credible allegation that Mr. Demoulas began to plan a disruption of the business and operation of Market Basket with a work stoppage," reads the press release. Demoulas' daughter, Madeline, and son, Telemachus, and several other Market Basket executives were also placed on leave. "The Executive Committee believes that Mr. Demoulas and others have taken these steps 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." Related: Walmart quietly working on genius solution to tariffs Demoulas' spokesperson Justine Griffin called the investigation "a farcical cover for a hostile takeover," reported WCVB. Griffin also stated that the company is currently operating at its peak performance. "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 saying is that history often repeats itself, and many are wondering if Market Basket is facing massive boycotts similar to those occurring a decade ago. Many shoppers, disappointed with the latest management move, are indeed signaling a possible boycott, writes Grocery Dive. A poll conducted by reveals that out of 400 respondents, 55% plan to stop shopping at Market Basket stores while Arthur T. remains on leave. "I would support a walkout if that's what it takes. I will not shop at Market Basket until it's resolved. Arthur T. is the heart and soul of that company and should be treated as such. These power grabs are a disgrace to the family legacy. His father must be rolling in his grave. Stop this nonsense!," one reader wrote. Related: Popular fast-food burger chain closes all restaurants in key area The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Boston Globe
6 days ago
- Business
- Boston Globe
Market Basket board puts CEO Arthur T. Demoulas on paid leave in dispute over management approach
If a work stoppage were to happen, it would be reminiscent of the to support Demoulas in a battle with his cousin, Arthur S. Demoulas, over control of the company. In the end, Arthur T. Demoulas, who had accused his cousin of trying to take money out of the business at the expense of maintaining the chain's employee benefits and low prices, and his three sisters succeeded that year in buying out Arthur S. Demoulas and his siblings in a Advertisement Market Basket workers protested at the company's wholesale distribution center in Andover in August 2014. Jim Davis/Globe Staff Demoulas, who is now 70 years old, and his sisters recently paid off the debt they took on to win complete control of the Tewksbury-based company. Market Basket continued to grow and flourish under their ownership. In recent years, it has risen up the supermarket rankings of marketing research firm Dunnhumby, placing second in the nation in the latest such list announced in January behind Texas chain H-E-B, in large part because of its reputation as the place to go for grocery deals. Advertisement The executive committee put several other employees on leave alongside Demoulas, though it says they'll all continue to be fully paid while on leave. In the memo to employees, the committee says it believes that the potential walkout was being considered as a retaliatory measure against the board 'for requiring that the CEO work collaboratively with the Board regarding basic company operations and plans.' The executive committee is hoping for business to continue as usual for the 90-store chain and its 30,000-plus workers. No employee jobs or benefits are in jeopardy, the memo says. While Demoulas and the others are on leave, it says, 'the Board will rely on the existing dedicated management team to ensure that the operations of Market Basket will maintain the quality and superb service that customers expect and enjoy.' This is a developing story and will be updated. Jon Chesto can be reached at
