Latest news with #Demoulases

Boston Globe

This is how the Market Basket family feud will end

The D'Alessandros and Demoulases shared the same vision and operating thesis: Provide quality produce and breads, and specialize in meat. They both forged relationships with local bakers, dairies, farms, and other suppliers to guarantee freshness. The overriding tenets were to keep their products affordable, provide great customer service, and employ friendly and knowledgeable people. For my grandparents, that formula worked for more than 30 years. The shop had hundreds of loyal customers, and people traveled from miles around to buy sausages, homemade pastas, and high-quality produce. Customers were greeted by name, and their favorite foods were put aside for them in anticipation of their visit. Like the Demoulases, the entire family worked in the store and learned the value of customer service, excellent products, and affordable pricing. Advertisement Vincenzo D'Alessandro at his market in Utica, N.Y., circa 1920. Courtesy D'Alessandro family Alas, however, this is where the stories diverge. In the 1950s, the first supermarket opened in Utica, and its expansive space, hundreds of brand-name products, and lower prices began to attract my family's customers. By the 1960s, more supermarket chains appeared, and stores like ours disappeared, unable to compete. Advertisement The Demoulas family, on the other hand, defied the national supermarket chain Pacman strategy of swallowing most of the smaller grocery stores. In 1964, the Demoulases That is quite remarkable. The founding Demoulases would be so proud of what has been built, the pure genius of the model. Except if they were around today, they would be ashamed at the family's behavior. In 2014, the two Demoulas family factions, each headed by cousins, both named Arthur, were in a very public war with each other, resulting in Arthur T. and his three sisters buying out the Arthur S. side Mike DeMoulas in the window of the Dummer St. store in Lowell in 1939. A current kerfuffle involves the sisters, who together own the majority of the shares and who placed their brother, Arthur T., on administrative leave because he was allegedly planning a work stoppage. They have launched an investigation into his activities, accused him of not sharing information, fired two long-standing executives, and are busily installing their children into succession. They recruited venture capital types and a lawyer to be members of the board of directors. It's all fascinating because after paying off the buyout debt, there is plenty of money for the four siblings — dividend payments of Advertisement I can tell you where this is headed. Those outside board characters will load millions of dollars in debt on this company and/or allow outside investors to take ownership positions. And they will sideline or fire Arthur T. to do so. Last week, board chair Jay Hachigian, an attorney appointed by the sisters, told Methuen Mayor David Beauregard, who is demanding the reinstatement of Arthur T., ' That's nonsense. This empowerment of outside lawyers and venture capital types will probably result in new investors and lenders demanding higher profits, fewer expenses, less expansion, and new management. For consumers, that will mean that within a few years, Market Basket will be a shell of itself. We will have higher prices, tasteless tomatoes from California, and store personnel who aren't very helpful. The 32,000 Market Basket loyal employees and hundreds of thousands of customers will pay the price. What should the family do about it? Mediation was announced last week, but it's a long way between mediation and settlement. To get to the best resolution, the entire family should first reflect on what a great dynasty generations of the Demoulas family have built; they should remember that while most of this generation has not worked in the stores, for generations they have benefited. I don't know Arthur T. or any of the family. But I am pretty sure if their grandparents and parents were here, they would say, 'Stop fighting. We are embarrassed by your behavior. All of you. Arthur T., be more cooperative. Sisters, get rid of the consultants, lawyers, and profiteers you are paying gobs of money to and work this out directly with each other. We built this business for our customers to have a unique experience and for you to have financial security for generations. Have the decency to not trample on our legacy.' Advertisement What can we consumers do about it? During this mediation period, we should let all parties know how we feel. Write to Market Basket and your local mayor and city officials demanding that the company settle this feud in the interests of the communities it serves. Second, boycott Market Basket until this is settled. If it's money driving decisions, the family shouldn't take for granted that we are helpless. No stronger message will bring this family to its senses than withholding our dollars. I wish my grandparents had built this juggernaut. If they had, I would be mighty grateful and celebrating their vision and hard work. I wouldn't be dishonoring it.