Latest news with #MarketBasket
CBS News
a day ago
- 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.
Miami Herald
a day 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
a day ago
- 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
CBS News
a day ago
- 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."
CBS News
2 days ago
- Business
- CBS News
Devoted Market Basket shoppers wonder what's next after CEO Arthur T. Demoulas is suspended
Market Basket shoppers at the location in Waltham, Massachusetts said they hope the company's CEO Arthur T. Demoulas and the board of directors get things settled so the New England institution will be around for years to come. "I think last time around, it was an inside job but this time around, it's an outside job and I hope they stop it because I love this store," said shopper Doris Wald. Market Basket CEO suspended The company's board suspended Demoulas on Wednesday. The board said it is investigating "credible allegations that Mr. Demoulas began to plan a disruption of the business and operations of Market Basket with a work stoppage." Demoulas said two of his children and several other executives were also placed on leave and he called the decision "a hostile takeover." The company said this will not have an affect on customers or employees. A spokesperson for Demoulas said he is a minority owner and owns 28% of the company. The spokesperson said he was ousted from his position as president and CEO by his three sisters and their three appointed board members. Market Basket Board Chair Jay Hachigian said Demoulas' sisters are not members of the board. "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," said Hachigian in a statement. "It's a family quarrel, so they'll settle it," said shopper Ottavino Forte. "Market Basket will go on and expand even more." CEO forced out in 2014 In 2014, Arthur T. Demoulas was forced out when the Market Basket board was controlled by his cousin, Arthur S. Demoulas. The move caused a customer boycott and the non-union employees to essentially go on strike. Weeks later, a deal was reached to sell the Market Basket chain to Arthur T. Demoulas for nearly $1.6 billion. "It sounded like a lot of people supported the CEO," said shopper Tyler Walsh. Online, shoppers on social media were mixed, with some saying they'd boycott again and others saying this between Demoulas and his family. Shoppers in Waltham were ambivalent about boycotting again, more than 10 years later as another dispute had started. "It took about six weeks or more for them to settle it," said Forte. "I don't want that because then they close the store," said Wald.
