Latest news with #Demoulas
Boston Globe
13 hours ago
- Business
- Boston Globe
The Market Basket saga: This time, the family feud is over succession. Will employees and shoppers care?
Write to us at . To subscribe, . TODAY'S STARTING POINT Will this be another summer of protest for Market Basket employees and customers? Don't count on it, says Tom Kochan, the MIT Sloan School of Management professor who wrote a Here are the CliffsNotes: Demoulas ( Now Good Arthur is once again on the outs Advertisement 'It would be hard to envision a mass protest because this does come across as a Not only that, but pandemic-era inflation has driven up grocery prices and squeezed household budgets. Switching from the bargains at Market Basket to a pricier chain like Stop & Shop might be a tough sell these days. Advertisement The and daughter, Madeline, who both work at Market Basket, while it investigates whether Demoulas is orchestrating a work stoppage to retaliate against the board. 'The issues of succession are not a matter of one family or another, but about responsible stewardship of a large successful company so that it's around and remains the same great company for the next 100 years,' Jay Hachigian, chair of the Market Basket board, said in a statement. 'Despite repeated requests over an extended period of time, the 70-year-old CEO has not allowed the Board to discuss succession planning or to even meet the children he wants to put in charge.' Demoulas's sisters — Frances, Glorianne, and Caren — have sway since together they own about 60 percent of the company, while he controls just 28 percent. The sisters also have children who work at the company. It's easy to see why succession is important: The chain, Justine Griffin, a spokesperson for Arthur T. Demoulas, said he has not only discussed succession with the board 'on many occasions,' but has also recommended that his son and daughter succeed him. Advertisement 'The bottom line is — it is not that he has not offered a succession plan,' Griffin said. 'It is that other shareholders do not like it." So how will the latest Demoulas drama end? Kochan of MIT expects the warring factions to end up in court, which has become a 'We need fewer lawyers here,' he added. 🧩 5 Down: 77° POINTS OF INTEREST The Metfern Cemetery served the Metropolitan State Hospital and the Fernold School, with 310 burials from 1947 to 1979. Pat Greenhouse/Globe Staff Boston and Massachusetts 'A celebration of freedom and love': As an LGBTQ+ Pride flag flew above Boston City Hall, Mayor Michelle Wu Karen Read retrial: The defense called a forensic pathologist who testified that the scratches on John O'Keefe's arm Out of state: Pennsylvania's US senators debated in Dorchester as part of a forum meant to foster bipartisanship. 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( 💸 Miss Conduct archives: Back in 2015, T.Z. of Brookline didn't tip more than the leftover change for coffee at Starbucks or for takeout. 🥗 Revisiting plastic wrap: Does it really work when it comes to keeping food safe? Yes. But it may not be safe to use in the microwave. ( Advertisement 🧑🍳 Cooking stories: Sheryl Julian likes cookbooks that reflect the writer and have personal appeal. Here are 🥘 Father's Day menu: Give Dad a break from grilling 🏈 Tribute: His former teammates heaped praise on Patriots center David Andrews 🗑️ Eat inside, tourist: Visitors who marvel at the pristine streets of Japan are baffled by the lack of trash cans. Stop eating on the street, say residents. ( Thanks for reading Starting Point. NOTE: A 🎁 emoji indicates a gift link. A $ is a subscription site that does not offer gift links. This newsletter was edited and produced by ❓ Have a question for the team? Email us at ✍🏼 If someone sent you this newsletter, you can 📬 Delivered Monday through Friday. Shirley Leung is a Business columnist. She can be reached at
Boston Globe
2 days ago
- Business
- Boston Globe
The Market Basket boardroom battle is a real-life ‘Succession' saga
Demoulas's ouster is an example of the ugly maneuvering that can happen when the relationships underpinning a family business go sour. And some of the same dynamics that have made Market Basket one of the juiciest business stories of the century are strikingly similar to those that made HBO's boardroom epic a hit. Kimberly Eddleston, a professor at Northeastern University who teaches courses on family-owned business management, said that the hallmarks of the show — 'the family infighting, the dysfunction from brothers, cousins, siblings; that absolute discord, not learning from past mistakes' — all appear to be happening at Market Basket. Related : Advertisement In both cases, the dysfunction can be traced back decades. In the first season of the show, family patriarch Logan Roy (played by Brian Cox) has long been estranged from his brother Ewan (James Cromwell), a fact that becomes pivotal to the schemes of Logan's son Kendall (Jeremy Strong). Similarly, the power struggle at Market Basket has its roots in the 1990s, when the families of two Demoulas brothers — the sons of founder Athanasios Demoulas — went to court over a dispute about company shares. (The cousins, Arthur S. and Arthur T., even got into a fistfight in court). Advertisement The court eventually ruled in favor of Arthur S.'s side of the family, giving them majority control over the business. And yet, in 2008, a wayward board member on the Arthur S. side was the deciding vote to name Arthur T. as CEO. The rivalry between the two branches erupted into all-out war in 2014, when the Arthur S. side of the family attempted to push out his cousin. Arthur T., who characterized it as a fight between shareholder profits versus lower prices and employee benefits, Employees and customers held a rally in support of Arthur T. Demoulas in 2014 in Tewksbury. Suzanne Kreiter/Globe Staff But When the board's executive committee pushed Demoulas out on Thursday, they said that he had refused to cooperate with board members over budgeting, capital expenditures, and a clear succession plan. The shifting family loyalties are also apparent, both on screen and in the grocery business. Like in 'Succession' — where Kendall is betrayed by brother Roman (Kieran Culkin) and sister Shiv (Sarah Snook) eventually takes sides against both — the move against Demoulas was apparently spearheaded by the same three sisters who had once helped him finance the 2014 buyout that kicked his cousin, Arthur S., out of the picture. Advertisement 'That's a real similarity, that shows you the lack of trust between family members, and the lack of communication too,' Eddleston said. 'It just created all this conflict and tension.' Eddleston said that roughly 60 percent of family-owned businesses don't have a succession plan. Or, as in 'Succession,' 'the leader has one in his head, but doesn't communicate it, which is just as damaging.' There are, of course, key differences from the show. For one thing, there is no Logan Roy figure holding everything together for Market Basket; family patriarch Athanasios Demoulas is long gone, and there's an argument to be made that the current jockeying is essentially the long-delayed fallout from his death. Arthur T. Demoulas might even be closer to Kendall — the proverbial 'eldest boy' who (though he rarely conducts interviews) has shown he's willing to And more obviously, 'Succession' took place in the halls and boardrooms of a massive, multinational media conglomerate — a far cry from a Tewskbury-based regional supermarket chain. The Roy children, for their part, would no doubt be uncomfortably out-of-place in an everyday grocery store environment. Jesse Armstrong (center, holding trophy) and the cast and crew of "Succession" accepted the Outstanding Drama Series award onstage during the 74th Primetime Emmys on Sept. 12, 2022, in Los Angeles. Kevin Winter/Getty But both companies, real and fictional, inhabit a shifting industry landscape that makes their continued relevance uncertain. Just as Waystar Royco is shown straddling the gulf between cable news and digital media, Market Basket's peers are Advertisement 'Retail is brutal,' Eddleston said. 'It's a very tough industry, especially the grocery store industry. That could add pressure, all these changes and the level of competition.' Arthur T. Demoulas has The question of whether and how the company should modernize its shopping experience may be another factor in the turmoil. 'The board definitely sees some different visions,' Eddleston said, 'Which we definitely saw those conflicts play out in the show. ' Camilo Fonseca can be reached at
Miami Herald
4 days ago
- Business
- Miami Herald
The Friday Checkout: Could Market Basket have another boycott on its hands?
When Market Basket's board ousted CEO Arthur T. Demoulas more than a decade ago, shoppers revolted and forced a sale of the company to the popular leader. This week, the board once again sidelined "Artie T," as many refer to him - and this time seems to think things will go differently. The 2014 ouster marked the apex of a long-simmering family feud between Demoulas and board members led by his cousin, Arthur S. Demoulas. This time around, the board said it's placing Arthur T. Demoulas on paid leave while it looks into allegations that he was planning a work stoppage. The board claims Demoulas has been uncooperative in addressing concerns over corporate oversight measures and succession planning, and said operations will continue as usual at its 90 New England stores while it conducts an investigation. But Market Basket's business may be anything but usual over the coming days and weeks. On social media, in local news reports and in flash polls, shoppers have decried the board's latest move, and many indicate they plan to boycott stores again. ran a poll asking shoppers whether or not they plan to continue shopping at Market Basket while Arthur T. remains on leave. Out of around 400 responses collected by Thursday afternoon, more than half (55%) said they don't plan on shopping at the stores. "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," one reader wrote. On Reddit and Facebook, meanwhile, people who said they boycotted the company more than a decade ago declared that they would do the same again, while others decried the board as greedy and said the company's values are in jeopardy with Arthur T. Demoulas out of leadership. Demoulas himself said through a spokesperson that the investigation is a cover for a "hostile takeover" of the company, no doubt fanning the flames. Although the board has tried to make a pointed, logical case for its decision to place Demoulas on leave, some shoppers think there is a conspiracy unfolding against the popular CEO, whom they feel embodies the low-frills, high-service approach they love about Market Basket stores. With so many people closely watching their spending, the prospect of change at a low-price grocer feels particularly alarming. The whole saga offers a powerful reminder to the industry about just how much shoppers can love a grocer that treats them well - and how willing they might be to revolt if they don't like what they see. In case you missed it Kroger e-commerce center drivers ready to strike Drivers at the Kroger fulfillment center in Forest Park, Georgia, have voted to authorize a strike, the International Brotherhood of Teamsters said in a Wednesday announcement, noting that the workers' decision was in "response to the company's repeated refusal to negotiate a fair agreement." The workers, who joined Teamsters Local 528 last summer, are trying to negotiate their first union contract. The union claims Kroger has stalled negotiations and failed to offer a contract that meets basic standards. Sam's Club serves up pizza delivery The Walmart-owned club retailer said its members are getting what they have long asked for: pizza delivery. All Sam's Club locations will offer delivery of freshly made pizzas by the end of May, the retailer said in a press release. The pies, which sell for just under $9, are also available for Express delivery in under three hours. "When we talk about innovation, it's not just about what's new - it's about what makes life easier for our members," Kurt Hess, group director of operations and implementation at Sam's Club, said in the announcement. "Pizza delivery is a perfect example: it brings together value, convenience and one of our most-loved Café items in a way that fits how people shop today." Costco records positive sales growth The club retailer beat Wall Street estimates, with net sales up nearly 7% in the U.S. and e-commerce sales up nearly 15% during its third quarter compared to the same period last year, the company reported Thursday. The company's net income also recorded growth, up 13% year-over-year to $1.9 billion. Impulse find Krojis: TikTok's next influencers? Could Kroger's animated characters, known as Kroji's, help the grocer go viral? The grocer seems to be giving that idea a shot. A TikTok from Kroger on May 20 shows people dressed up as Krojis inside a store. One shows off the grocer's produce selection while the other has a cart filled with gallons of chocolate milk, accompanied by an audio clip from the 2004 film "White Chicks." The post has more than 47,000 likes and 774,000 views, making it one of the grocer's most viewed TikToks in recent days (although a cheese pull video of a mozzarella stick onion ring has 991,000 views). While this isn't the first time Krojis have appeared in the grocer's TikToks, their recent reappearance suggests they may be back again in the future. Whether Krojis will become endearing influencers - or a jump scare - on social media remains to be seen. Copyright 2025 Industry Dive. All rights reserved.
Yahoo
5 days ago
- Business
- Yahoo
Market Basket CEO investigation is ‘hostile takeover,' CEO spokesperson claims
A spokesperson for Market Basket CEO Arthur 'Artie T.' Demoulas claims that an investigation into whether Demoulas was considering leading a work stoppage is nothing more than a facade for a 'hostile takeover.' '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,' said spokesperson Justine Griffin in an email on Thursday. 'The company is currently operating at its peak performance and the notion that this board is going to conduct an investigation is a farcical cover for a hostile takeover.' Demoulas was placed on paid administrative leave on Wednesday following disputes with the company's board. Griffin claims that Demoulas's three sisters and the three board members whom they appointed were involved in the ouster. Additionally, Demoulas's daughter, Madeline, and son, Telemachus, and several other Market Basket executives were also placed on leave, Griffin said. The board wrote in a memo on Wednesday it had received 'credible allegations' that the CEO was planning 'a disruption of the business.' '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,' the company said in a statement. 'Mr. Demoulas has also resisted an appropriate succession plan for Market Basket, asserting that he has the unilateral right to appoint his children to succeed him without any consideration of the view of the Board or the majority owners of Market Basket.' No employee jobs, salaries or benefits will be affected by this news, the memo reads. The news of Demoulas' ouster comes 11 years after he was fired from his position in 2014, with another wing of the Demoulas family, led by his cousin, Arthur S. Demoulas, taking over. His firing resulted in two months of protests conducted by Market Basket employees, which eventually led to Arthur T. Demoulas and his sisters buying out the other family members' shares in the company. Market Basket operates close to 100 stores in New England. 2025 Northampton High School Prom Patriots rookie could be a 'real steal' if Mike Vrabel can coach him up, NFL analyst says Patriots veteran linebacker off to good start in Mike Vrabel's defense Young receiver shows he still needs to mature with Patriots No jail time for rock guitarist previously charged with vehicular manslaughter Read the original article on MassLive. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Axios
5 days ago
- Business
- Axios
Market Basket's new family food fight
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.
