Market Basket leaders fire Arthur T. Demoulas, longtime CEO
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Arthur T. Demoulas in 2014. Photo: Joanne Rathe/The Boston Globe via Getty Images
The Demoulas family feud escalated yesterday with the firing of Market Basket president and CEO Arthur T. Demoulas.
Why it matters: The beloved Market Basket leader, who survived an ousting by his cousin a decade ago, may have reached the end of his run in the family business.
Driving the news: The board of directors overseeing Demoulas Super Markets unanimously voted to oust Demoulas as president and CEO after two failed mediations, board member Steve Collins told the Boston Business Journal in a statement.
- Justin Griffin, a spokesperson for Demoulas, said the board, which is comprised of members appointed by his sisters, notified him at 10:30pm Tuesday.
What they're saying: "Market Basket will not change its operations, profit-sharing, bonuses or culture, and will continue to offer the best groceries at the lowest prices anywhere in New England — well into the future," Jay Hachigian, the company's board chair, said in a statement.
Flashback: Demoulas, his two children and three executives were suspended in late May over suspicions that Demoulas was planning a work stoppage.
- At the time, Demoulas called the probe a "farcical cover for a hostile takeover."
The other side: Griffin said the firing is not only disappointing to Demoulas, but a violation of the board's fiduciary duties.
- "They took a company that was operating at peak performance and recklessly threw it into turmoil and did so in a needlessly public manner and on baseless grounds fabricated from the start," Griffin said.
What we're watching: The board filed a notice with the Delaware court of Chancery, where Demoulas Super Markets' holding company is incorporated, to formally remove Demoulas.
- The board's lawsuit called Demoulas a "dictator," saying they had to choose between autocratic rule and protecting a flourishing company, per the Boston Business Journal.