Latest news with #Tewksbury-based
Yahoo
3 days ago
- Business
- Yahoo
Market Basket suspends 48 employees at Massachusetts store after DHS audit
Market Basket has reportedly suspended dozens of employees at one of its Massachusetts stores following a Department of Homeland Security audit. Forty-eight workers at the Tewksbury-based grocery chain's New Bedford location were suspended last week, The Boston Globe reported. Adrian Ventura, executive director of the New Bedford-based nonprofit Centro Comunitario de Trabajadores, told the newspaper that suspensions are linked to recent operations by federal immigration officials. A Market Basket spokesperson also confirmed to The Globe that the DHS investigation dated back to 2023. The DHS ordered an I-9 audit of the store in 2023, but it was delayed by the US Department of Labor, according to the report. Market Basket told The Globe that the recent DHS investigation of paperwork for some employees revealed 'several had not been properly updated.' The grocery chain says it looks forward to welcoming the suspended employees back to work once their paperwork is up to date. ICE and the DHS have not commented on the matter. RELATED: Market Basket board shares update on investigation into suspended CEO Arthur T. Demoulas What's going on with Market Basket? Fired execs say company culture is 'far from vibrant' 'Drifting dangerously off course': Mass. mayor urges Market Basket to bring back Arthur T. Demoulas Download the FREE Boston 25 News app for breaking news alerts. Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW Solve the daily Crossword
Boston Globe
04-06-2025
- Business
- Boston Globe
Could Market Basket be sold? Not without Arthur T. Demoulas's permission.
Meanwhile, Now, though, the battle appears to be between Demoulas and his three sisters, the other key shareholders in the Tewksbury-based supermarket chain who helped 'Artie T.' buy out his cousin's faction in 2014. The four siblings finished paying off the debt from that transaction late last year. Together, the three sisters collectively control the company: Each of them owns around 20 percent of the company's shares, while Demoulas owns 28 percent, and a trust for the family's grandkids holds the rest. Advertisement There has been speculation on social media that the sisters could be looking to cash out, though the three board members aligned with them say that is not the case. The company's certificate of incorporation, drawn up after the resolution of the previous family fight 11 years ago, gives Demoulas a way to block a sale if his sisters were to pursue one. The charter states that an affirmative vote representing at least 80 percent of the shares is necessary to outright sell the company, likely worth billions of dollars today, or any significant real estate the company owns. One sister could potentially sell her 20 percent stake to, say, a private equity firm, but would need to give the company and Demoulas and the other sisters the opportunity to buy her stake first. Board member Michael Keyes, one of the three members who put Demoulas on paid leave, said there is no interest in selling Market Basket, and that the current fight is about ensuring the company has a strong future as an independent business. 'This is about longevity and making sure Market Basket is here for the next 100 years,' Keyes said in an email. 'That's why the other family members stood by Arthur and used their money to repay over a billion dollars of debt to keep this a family business. Despite their significant contribution, they have been frozen out from what has been and always will be a family business.' A spokesperson for Arthur T. Demoulas declined to comment about any potential sale of the company. Demoulas, who is 70, had been working his usual long hours and showed no interest in retiring or selling before the board members put him on paid leave, per executives familiar with his activity at the company. He had proposed that his two children on the company's staff, Telemachus and Madeline, be considered as successors, but the majority of the board gave Demoulas a document last August stating that none of his children would be considered for promotion to CEO. Advertisement Burt Flickinger III, managing director of retail consultancy Strategic Resource Group, said a minority stake would be sold at a deep discount to what the shares would be worth if the buyer was acquiring the entire company. Likewise, a Market Basket without Arthur T. and his top lieutenants would sell for far less than one with them still at the helm. The supermarket business is already so competitive, he said, with slim profit margins. Flickinger cited the strong work ethic, shrewd management skills, and commitment to keeping low prices shown by Demoulas as well as Joe Schmidt and Tom Gordon, two top executives who were also put on paid leave last week. 'He's the only one in North America that can win against Wegmans and Walmart,' Flickinger said. 'Make him and Joe and Tom leave the company, Walmart will wipe the floor with them, as will Costco, as will BJ's. ... They don't realize they're better off getting their annual dividends with Arthur running the company, than they are with kicking them out.' Jon Chesto can be reached at
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
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
Boston Globe
28-05-2025
- Business
- Boston Globe
Market Basket board puts CEO Arthur T. Demoulas on paid leave in dispute over management approach
If a work stoppage were to happen, it would be reminiscent of the to support Demoulas in a battle with his cousin, Arthur S. Demoulas, over control of the company. In the end, Arthur T. Demoulas, who had accused his cousin of trying to take money out of the business at the expense of maintaining the chain's employee benefits and low prices, and his three sisters succeeded that year in buying out Arthur S. Demoulas and his siblings in a Advertisement Market Basket workers protested at the company's wholesale distribution center in Andover in August 2014. Jim Davis/Globe Staff Demoulas, who is now 70 years old, and his sisters recently paid off the debt they took on to win complete control of the Tewksbury-based company. Market Basket continued to grow and flourish under their ownership. In recent years, it has risen up the supermarket rankings of marketing research firm Dunnhumby, placing second in the nation in the latest such list announced in January behind Texas chain H-E-B, in large part because of its reputation as the place to go for grocery deals. Advertisement The executive committee put several other employees on leave alongside Demoulas, though it says they'll all continue to be fully paid while on leave. In the memo to employees, the committee says it believes that the potential walkout was being considered as a retaliatory measure against the board 'for requiring that the CEO work collaboratively with the Board regarding basic company operations and plans.' The executive committee is hoping for business to continue as usual for the 90-store chain and its 30,000-plus workers. No employee jobs or benefits are in jeopardy, the memo says. While Demoulas and the others are on leave, it says, 'the Board will rely on the existing dedicated management team to ensure that the operations of Market Basket will maintain the quality and superb service that customers expect and enjoy.' This is a developing story and will be updated. Jon Chesto can be reached at
