Latest news with #Demoulas'
Yahoo
30-05-2025
- Business
- Yahoo
War of words: Market Basket CEO ‘hijacked' company, board chair alleges
The chair of the Market Basket board on Thursday shed more light on the decision to place longtime CEO Arthur T. Demoulas on paid administrative leave. The Tewksbury-based grocery chain's board of directors informed employees on Wednesday that litigation firm Quinn Emanuel Urquardt & Sullivan was investigating allegations that 'Artie T' has been considering leading a work stoppage that could upend the grocery giant's 90 New England locations and over 30,000 workers. The board said it believes that Demoulas' alleged planned work stoppage was in retaliation against the board for requiring him to work collaboratively with them regarding 'basic company operations and plans.' In a statement shared with Boston 25 News on Thursday, Jay Hachigian, Chair of the Board at Market Basket, said that Demoulas 'essentially hijacked' the company. '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,' Hachigian alleged. '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. Demoulas' daughter, Madeline, and son, Telemachus, were among several other Market Basket employees also placed on leave, according to Justine Griffin, a spokesperson for Demoulas. Griffin has alleged that Demoulas was ousted in a 'hostile takeover' by his three sisters and three appointed board members: Hachigian, Steven Collins, and Michael Keyes. Hachigian fired back Thursday, criticizing Demoulas' behavior. 'It's simple: he wants it his way or no way,' Hachigian alleged. 'And that's not the way a CEO and minority owner like Arthur can be allowed to continue to conduct himself.' The board assured employees that there would be no changes to their jobs, while also assuring customers that the investigation into Demoulas' alleged actions wouldn't impact store operations. 'There is no insurgent group, there is no one looking to change pricing, there is no one looking to change employee comp or benefits or profit-sharing,' Hachigian said Wednesday. 'Everything will remain the same.' All trucks made scheduled deliveries to Market Basket stores on Thursday, and the weekly deal flyer went out as well, according to the company. The board of directors is unsure how long the investigation will take. Demoulas' suspension comes 10 years after he was fired by a board controlled by Arthur S. Demoulas, his cousin and rival. After being sacked, store workers staged a walkout in support of Arthur T. that lasted six weeks. To protest, hundreds of warehouse workers and drivers refused to deliver fresh produce, leaving shelves depleted. Not only did the workers stick together, but customers soon followed by boycotting the stores in solidarity. Customers began to shop elsewhere because they couldn't find fresh food at Market Basket, while others stayed away in a show of support for workers and Arthur T. The usually crowded stores turned into ghost towns, with only a trickle of customers coming in. After weeks of pressure from suppliers suffering lost revenue, and the governors of Massachusetts and New Hampshire getting involved in work negotiations, the company announced that an agreement had been reached for Arthur T. to pay $1.6 billion for the 50.5 percent share of the company owned by Arthur S. and other family members. Download the FREE Boston 25 News app for breaking news alerts. Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW
Yahoo
29-05-2025
- 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
Yahoo
29-05-2025
- Business
- Yahoo
Deja vu? Market Basket CEO on leave a decade after walkouts, boycotts upended business
Longtime Market Basket CEO Arthur T. Demoulas has been placed on paid administrative leave amid an investigation into allegations that he's been considering leading a work stoppage that could upend stores across Massachusetts and New England. 10 years after 'Summer of Market Basket,' longtime workers praise customers for helping save company The Tewksbury-based grocery chain's board of directors informed employees on Wednesday that a law firm would be investigating 'credible allegations' that Demoulas was planning to disrupt operations of the grocery giant's 90 locations and over 30,000 workers by planning a work stoppage. The board said it believes that Demoulas' alleged planned work stoppage was in retaliation against the board for requiring him to work collaboratively with them regarding 'basic company operations and plans.' 'At a time of great economic uncertainty for many households, such work stoppages would significantly harm and broadly disrupt Market Basket's stores and operations across New England, as well as its valued customers, associates, and vendors,' the Market Basket Board of Directors told Boston 25 in a statement. Justine Griffin, a spokesperson for Arthur T. Demoulas, said in a statement that the CEO and minority owner of Market Basket was ousted in a 'hostile takeover' by his three sisters and three appointed board members-Jay Hachigian, Steven Collins, and Michael Keyes. Hachigian assured employees that there would be no changes to their jobs, salaries, or benefits. 'There is no insurgent group, there is no one looking to change pricing, there is no one looking to change employee comp or benefits or profit-sharing,' Hachigian told reporters. 'Everything will remain the same.' Demoulas' daughter, Madeline, and son, Telemachus, were among several other Market Basket employees also placed on leave, Griffin said. '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,' Griffin said. '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.' Steven J. Collins, Director of Market Basket, added, 'Market Basket stores provide a place that our local communities consistently count on for both their livelihoods and daily needs—the Board has a responsibility to safeguard the company's effective operations now and well into the future." A spokesperson for the board of directors said that Demoulas will continue to be paid his full salary. While Demoulas is suspended, the board of directors says leadership of the company will fall to the existing management team. 'As you know, Market Basket takes great pride in operating with unwavering integrity that aligns with our high standards, treating our professionals with respect, and consistently delivering meaningful value to our customers,' the memo reads. 'Thank you for your commitment to our Market Basket community and our customers.' The board of directors is unsure how long the investigation will take, but noted they have no plans to sell the company. Demoulas' suspension comes 10 years after he was fired by a board controlled by Arthur S. Demoulas, his cousin and rival. After being sacked, store workers staged a walkout in support of Arthur T. that lasted six weeks. To protest, hundreds of warehouse workers and drivers refused to deliver fresh produce, leaving shelves depleted. Not only did the workers stick together, but customers soon followed by boycotting the stores in solidarity. Customers began to shop elsewhere because they couldn't find fresh food at Market Basket, while others stayed away in a show of support for workers and Arthur T. The usually crowded stores turned into ghost towns, with only a trickle of customers coming in. After weeks of pressure from suppliers suffering lost revenue, and the governors of Massachusetts and New Hampshire getting involved in work negotiations, the company announced that an agreement had been reached for Arthur T. to pay $1.6 billion for the 50.5 percent share of the company owned by Arthur S. and other family members. Download the FREE Boston 25 News app for breaking news alerts. Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW
