Latest news with #ArthurTDemoulas
CBS News
a day ago
- Business
- CBS News
Market Basket, Arthur T. Demoulas taking fight for control to mediation in September
The Market Basket board of directors and suspended CEO Arthur T. Demoulas will take their ongoing dispute to a mediator in September as the latest leadership struggle for the grocery store chain continues. Demoulas was suspended and other executives were put on paid leave in May 28. According to the board, the group was suspended for allegedly "encouraging a widespread work disruption" to show support for Demoulas. Joseph Schmidt, director of operations, and Tom Gordon, grocery director, were later fired. The dispute stems from Demoulas' role with Market Basket and who will control the popular chain of grocery stores. In a statement, Demoulas confirmed that the parties have agreed "to put the issues between them to a mediator on September 3 in hopes of avoiding litigation and reaching a quicker and amicable resolution that is in the best interest of Market Basket's associates, customers and the communities it serves." Demoulas' statement went on to accuse the Board of Directors of acting irresponsibly. "The discussions about a mediation have been going on for more than 2 weeks. And that fact alone illustrates how irresponsible Directors Jay Hachigian, Steven Collins and Michael Keyes were early last week, when they fired Joe Schmidt and Tom Gordon and then promoted a series of employees to take their places," Demoulas said. "This was all done in a clear attempt to get out ahead of the mediation process in an effort to further silence the associates within the company who are demanding the return of the senior management team." The Market Basket board of directors confirmed that mediation efforts will take place on September 3. But chairman Jay Hachigian disputed Demoulas' accusations. "The statements by Arthur's spokesperson are not credible and make no sense. I look forward to seeing Arthur in mediation," Hachigian said in a statement. Though Demoulas is the CEO of Market Basket, he is a minority shareholder who owns 28% of the company. Three of his sisters each own a 20% share, while the remaining 12% is in a trust for the family's grandchildren. Demoulas and his sisters were involved in a dispute with their cousin in 2014. The battle for control of the company led to a customer boycott and Market Basket employees walking off the job to defend "Artie T." After six weeks, the dispute ended with Demoulas and his sisters coming out victorious.
CBS News
23-07-2025
- Business
- CBS News
Market Basket board fires two suspended executives, CEO Arthur T. Demoulas calls move "heartless"
Market Basket's board of directors has fired two suspended executives who are loyal to suspended CEO Arthur T. Demoulas. Joseph Schmidt, director of operations, and Tom Gordon, grocery director, were both fired Tuesday in the latest chapter in the struggle for power of the popular supermarket chain. Demoulas, two of his children, Schmidt, Gordon and a third executive were all suspended and put on paid leave back on May 28. The board said Schmidt and Gordon were suspended for allegedly "encouraging a widespread work disruption" to show support for Demoulas. Demoulas and the board of directors are in a dispute over his role with Market Basket and who will control the company. In a statement Tuesday, the board said the two executives were fired for "insubordination, making false and derogatory remarks about the company and people associated with it, and inappropriate communications with colleagues." "The investigation uncovered evidence that Schmidt and Gordon, following their suspensions, both directly encouraged employees to slow down and disrupt operations at Market Basket, including by telling them to defy their supervisors," the board said Tuesday. "Despite warnings to stop pressuring Market Basket associates to join his side, Schmidt continued to defy instructions to avoid communicating with employees while under suspension." The board also said Schmidt "reportedly told colleagues - falsely - that if Demoulas were removed as CEO they would lose their bonuses and profit sharing." After they were suspended, Gordon and Schmidt went to two Market Basket stores in New Hampshire in "defiance of instructions to stay off Market Basket premises during the investigation," the board said. Demoulas ripped the board for firing the veteran executives, saying they were "easily cast aside." Gordon had been with Market Basket for 50 years, Schmidt for 39 years. "They are just collateral damage in this pre-planned coup. To Market Basket, Tom and Joe are part of the heart and soul of the company and key executives in its immense success to date," Demoulas said. "In addition to being men of strong character, these are two of the brightest and best grocery store operators in the business, and their extraordinary work has been key to building this company and its culture. This is among the worst decisions that could be made by this board." Demoulas is the CEO, but he's a minority shareholder in Market Basket. He owns 28 percent of the company. His three sisters each have a 20-percent share. The other 12-percent is in a trust for the family's grandchildren. Demoulas said Schmidt and Gordon "belong on the Market Basket team." "We will use all efforts to reverse this heartless and unwarranted decision," he said. Schmidt and Gordon will hold a news conference near the Market Basket on General Way in Reading at 10:30 a.m. Wednesday to discuss their terminations. "Before the investigation was even into its first week, Mr. Schmidt and Mr. Gordon initiated a media campaign to disparage the company, the Board of Directors and the owners and pressured associates - effectively doing in full sight what the Board of Directors suspected before their suspension. They had to know that their behavior (after multiple warnings) would lead to this result," the board said.
Yahoo
31-05-2025
- Business
- Yahoo
Longtime Market Basket execs say they expect to be sacked amid company's turmoil
Two longtime Market Basket executives have said they expect to lose their jobs as part of a decision to put the company's CEO on leave, according to published reports. The Friday decision by Demoulas Super Markets, which runs the iconic Boston-area supermarket chain, puts CEO Arthur T. Demoulas's future on the line, according to NBC-10 in Boston. But it also appears to mean that the company's operations manager, Joe Schmidt, a 39-year veteran, and grocery supervisor Tom Gordon, a 49-year veteran, are headed for the exits, the station reported. Schmidt and Gordon were also put on leave this week, but say they were not given specific reasons why. Both spoke in an interview outside Market Basket's Reading store on Friday afternoon, according to The Boston Business Journal. 'They had letters, and they stated that they wanted to speak to certain individuals. I spoke with them,' Schmidt said of two company directors, the Business Journal reported. 'They told me that I was being placed on administrative leave due to some allegations that I've had inappropriate conduct of some type, without giving me any indication as to what that would be.' 'That's something that I take great exception to,' Schmidt added. 'I've been with the company for 39 years, and every single day I'm trying to do what's in the best interest of Demoulas Super Markets, and for two essential strangers to come in and tell me that my conduct is somehow damaging the corporation with Demoulas Super Markets and Market Basket, quite frankly, was insulting.' The public relations firm representing the board, Seven Letter, put out a statement disputing the claim that Schmidt and Gordon weren't told why they were being placed on leave. 'Joseph Schmidt and Tom Gordon each received letters specifically notifying them of the basis for their suspensions with pay, including that they have been actively pressuring associates to participate in an improper work disruption,' the firm said in its statement. 'As we also informed them, we are conducting an investigation to get to the bottom of it. Therefore, any suggestion that they are not aware of the basis for their suspensions is simply not true.' Trump cuts axe Boston Globe archive, academic database from Mass. libraries Ex-Boston Red Sox Jackie Bradley Jr. gets surprise following ESPN broadcast Live in Boston? Got late-night munchies? New 'Late Night Food Truck' program might be your answer Boston Red Sox prospect (Mass. native) promoted to High A; The Password stays hot High bacteria levels prompt closures for these Mass. beaches Read the original article on MassLive.
CBS News
30-05-2025
- Business
- CBS News
Two Market Basket executives speak out after suspension. "I've given my life for this place"
Spokesperson says there's currently no negotiations between Market Basket CEO and board Spokesperson says there's currently no negotiations between Market Basket CEO and board Spokesperson says there's currently no negotiations between Market Basket CEO and board Market Basket employees, including two executives put on paid leave by the Board of Directors, are speaking out about the ongoing power struggle and new fight for control of the company. "I've given my life for this place," said Grocery Director Thomas Gordon, who said he's worked for Market Basket for almost 50 years. On Friday, he and Director of Operations Joe Schmidt spoke about the recent decision by the Board of Directors to suspend President and CEO Arthur T. Demoulas and place him on paid leave, along with two of his children who work for the company. Both Gordon and Schmidt were also placed on administrative leave this week. "I think the next step will be that they'll probably fire me,," said Schmidt, who said he's been with Market Basket for 39 years. Arthur T. Demoulas suspended The board said Demoulas is being investigated by an independent law firm "for planning a work stoppage in retaliation for requests from the board for basic collaboration and oversight." "That's just absurd, nobody would do that," said Schmidt, when asked about the claims. "Mr. Demoulas had no indication that he was going to be fired." Demoulas said the investigation is "a farcical cover for a hostile takeover." He said he was "ousted from his position as President and CEO of Market Basket" by his three sisters and their three appointed board members. "There is no justification to take him out of his position as president and CEO," said Schmidt. On Friday, Market Basket Board Chairman Jay Hachigian said the company has no plans to change pricing and the business is not for sale. "Arthur was put on paid leave because that was done because of a disagreement between the board and Arthur as to the board's oversight responsibilities and Arthur's inability to allow the board conduct the oversight that it's legally required to do," said Hachigian in a video statement. Will shoppers and workers walk out again? Back in 2014, when Demoulas was in a legal battle with his cousin for control of the company, many Market Basket employees walked out in a show of support for him. Right now, it's unclear how customers and employees will react this time around. "I can't answer that question. I have to support myself, I'm a single person. I might stay but I don't know," said one Market Basket employee, who wished to remain anonymous. "If there's any activity, it would be from the customers," said Gordon. "It's their decision to make, not ours." On Friday, a spokesperson for the board said, there are currently zero negotiations between Demoulas and the board. The company has about 30,000 employees.
CBS News
30-05-2025
- Business
- CBS News
Market Basket CEO Arthur T. Demoulas is in a new fight for control of the company. Here's what we know.
What's going on at Market Basket? CEO Arthur T. Demoulas and the board of directors are in a dispute over his role with the popular supermarket chain. Here's what we know about the new Market Basket fight so far. Demoulas, two of his children and three other Market Basket executives were suspended and put on paid leave on Wednesday, May 28. The board said the CEO is being investigated by an independent law firm "for planning a work stoppage in retaliation for requests from the board for basic collaboration and oversight." Demoulas said the investigation is "a farcical cover for a hostile takeover." He said he was "ousted from his position as President and CEO of Market Basket by his three sisters and their three appointed board members - Jay Hachigian, Steven Collins, and Michael Keyes." As of Friday morning, a spokesperson for the board said, "there are currently 0 negotiations going on between Artie T and the board." Who owns Market Basket? Arthur T. Demoulas is the CEO of Market Basket, but he owns just 28-percent of the company. His three sisters each have a 20-percent share, for a total of 60-percent. The other 12-percent of the company is in a trust for the family's grandchildren. Will there be a Market Basket strike or walkout? There's been no comment from Demoulas on this. Jay Hachigian, the chair of the Board at Market Basket said, "nothing is going to change." "There's no plan to change pricing. There's no plan to change associates. There's no plan to change ownership. The business is not for sale. There really are no plans to change anything," he said in a statement. "This is really a matter strictly between the board and the CEO." Market Basket boycott There is no boycott of Market Basket right now. Back in the summer of 2014, when Arthur T. Demoulas and his sisters were in a battle with his cousin for control of the company, there was a customer boycott. Market Basket employees walked out to defend the man they know as "Artie T." It lasted six weeks and Demoulas and his sisters won. "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," a Demoulas spokesperson said Wednesday. However, the board said the sisters provided most of the money that allowed Market Basket to repay the $1.6 million they were loaned in 2014. Now, Demoulas is squaring off the with board, and, he says, his sisters as well. "Hijacked this company" "This is not a family dispute. This is a matter simply between the board and the CEO," Hachigian said. "Mr. Demoulas has acted for years as if he owns the entire company and can make every decision, big and small, without discussion or accountability to anyone. He has essentially hijacked this company for himself, and when the board put its foot down, he started to make plans to boycott and harm the company. It's simple: he wants it his way or no way. And that's not the way a CEO and minority owner like Arthur can be allowed to continue to conduct himself."
