Arthur T. Demoulas, CEO of Market Basket, has been placed on paid administrative leave by the board, which claims he was planning to disrupt business operations in retaliation for board pressures to collaborate. The board emphasized that no jobs are threatened and all benefits will continue. Demoulas, identified as “Artie T,” denied the allegations, describing the board’s actions as a “farcical cover for a hostile takeover.” He was ousted alongside several executives, raising concerns among customers about potential repercussions reminiscent of a previous family feud that nearly destroyed the company.
Arthur T. Demoulas, CEO of Market Basket, has been put on paid administrative leave by the company’s board of directors. In a message to employees, the executive committee stated that Demoulas and several colleagues were placed on leave due to concerns that he was planning “a disruption of the business and operations of Market Basket.” The board believes Demoulas intended to retaliate against them for insisting he collaborate with them on company operations and strategy. “We received information suggesting there were potential plans to disrupt business, largely in retaliation for the pressure we placed on Arthur to work with us,” said Jay Hachigian, chairman of the board. In the communication, the board assured that no jobs are at risk and that all benefits, including bonuses and profit-sharing, will continue. >> Download the free WMUR app for updates on the go: Apple | Google Play << “This action is unrelated to how we run our business, and our core values and the aspects that make Market Basket’s culture unique will remain unchanged,” the board stated. They indicated that an investigation into the allegations would proceed while Demoulas is on leave. “I truly believe this affects everyone because the prices here are significantly better than many other stores,” commented customer Kelley Lochmandy. Demoulas, referred to by employees as “Artie T,” has denied these allegations. In a statement, a spokesperson for Demoulas labeled the board’s actions “a farcical cover for a hostile takeover.” “Today, Mr. Arthur T. Demoulas was removed from his role as President and CEO of Market Basket by his three sisters and their three appointed board members – Jay Hachigian, Steven Collins, and Michael Keyes. His daughter, Madeline, son, Telemachus, and several Market Basket executives were also placed on leave,” said spokesperson Justine Griffin. “Under Mr. Demoulas’ leadership, the company paid off $1.6 billion in debt in December 2024, a debt incurred for the purchase of the company in 2014. Currently, the company is operating at peak performance, and the idea that this board will conduct an investigation is merely a farcical cover for a hostile takeover.” Over a decade ago, a family feud nearly split apart the cherished grocery store chain. Arthur T. Demoulas was ousted by his cousin, Arthur S. Demoulas, leading to months of worker protests and customer boycotts. After incurring significant losses, Arthur T. Demoulas purchased the controlling half of the company for $1.5 billion. Customers are worried that history might repeat itself. “That wouldn’t surprise me. They held him in high regard and all supported him. I wouldn’t be surprised if it happened again,” said customer Randy Maltais. >> Subscribe to WMUR’s YouTube channel <<
Arthur T. Demoulas, CEO of Market Basket, has been put on paid administrative leave by the company’s board of directors.
In a message to employees, the executive committee stated that Demoulas and several colleagues were placed on leave due to concerns that he was planning “a disruption of the business and operations of Market Basket.”
The board believes Demoulas intended to retaliate against them for insisting he collaborate with them on company operations and strategy.
“We received information suggesting there were potential plans to disrupt business, largely in retaliation for the pressure we placed on Arthur to work with us,” said Jay Hachigian, chairman of the board.
In the communication, the board assured that no jobs are at risk and that all benefits, including bonuses and profit-sharing, will continue.
>> Download the free WMUR app for updates on the go: Apple | Google Play <<
“This action is unrelated to how we run our business, and our core values and the aspects that make Market Basket’s culture unique will remain unchanged,” the board stated.
They indicated that an investigation into the allegations would proceed while Demoulas is on leave.
“I truly believe this affects everyone because the prices here are significantly better than many other stores,” commented customer Kelley Lochmandy.
Demoulas, referred to by employees as “Artie T,” has denied these allegations.
In a statement, a spokesperson for Demoulas labeled the board’s actions “a farcical cover for a hostile takeover.”
“Today, Mr. Arthur T. Demoulas was removed from his role as President and CEO of Market Basket by his three sisters and their three appointed board members – Jay Hachigian, Steven Collins, and Michael Keyes. His daughter, Madeline, son, Telemachus, and several Market Basket executives were also placed on leave,” said spokesperson Justine Griffin. “Under Mr. Demoulas’ leadership, the company paid off $1.6 billion in debt in December 2024, a debt incurred for the purchase of the company in 2014. Currently, the company is operating at peak performance, and the idea that this board will conduct an investigation is merely a farcical cover for a hostile takeover.”
Over a decade ago, a family feud nearly split apart the cherished grocery store chain. Arthur T. Demoulas was ousted by his cousin, Arthur S. Demoulas, leading to months of worker protests and customer boycotts.
After incurring significant losses, Arthur T. Demoulas purchased the controlling half of the company for $1.5 billion.
Customers are worried that history might repeat itself.
“That wouldn’t surprise me. They held him in high regard and all supported him. I wouldn’t be surprised if it happened again,” said customer Randy Maltais.
>> Subscribe to WMUR’s YouTube channel <<