Arthur T. Demoulas Ousted as Market Basket CEO Amid Corporate Tensions

LOWELL, Mass. — Arthur T. Demoulas is out as president and CEO of Market Basket following months of escalating tension within the company. The board of directors announced the decision on Wednesday, confirming a unanimous vote late Tuesday to remove him from his position.

Demoulas had served as CEO since May and was facing an investigation regarding allegations of collusion with allies to halt operations at the grocery chain. Board members criticized him for a lack of transparency and insufficient collaboration, which they deemed crucial for corporate oversight.

A spokesperson for Demoulas claimed the firing was predetermined and labeled it a “farcical cover up for a coup.” Justine Griffin, the spokesperson, stated, “The so-called investigation was designed from the start to falsely tarnish the reputation of Mr. Demoulas and his leadership team.”

Known affectionately as “Artie T.” to many, the 70-year-old leader had garnered significant support from employees and some Market Basket deputies during his tenure.

The corporate feud had been brewing for years, particularly against Demoulas’s sisters: Caren Demoulas Pasquale, Frances Demoulas Kettenbach, and Glorianne Demoulas Farnham. Together, they control approximately 61% of the company, while Arthur T. holds about 28%.

Attempts at mediation were made on September 3, but they were ultimately unsuccessful. Jay K. Hachigian, the chair of the board, expressed that both sides had previously agreed to keep details private during mediation. Hachigian confirmed that the board has filed with the Delaware Court of Chancery to formalize Demoulas’s removal.

The board’s complaint described Demoulas’s management style as dictatorial, alleging that he often ignored and resisted the board’s directives. They accused him of acting as if he were the sole owner of Market Basket, insisting on a succession plan involving his children.

Following his suspension last spring, Demoulas reportedly took extreme measures detrimental to company operations, displaying behavior inconsistent with his public persona as a concerned and caring leader.

Griffin stated that Demoulas was “deeply disappointed” by the failure of mediation and emphasized his desire to return to Market Basket. “He knew that there was a path to resolution and he was confident that if the board shared these priorities, agreement could be reached,” she noted.

Despite the leadership shakeup, Hachigian assured associates and customers that Market Basket’s operations and culture would remain unchanged, continuing to offer low prices and quality service across New England.

The fallout from this change could echo through the company, reminiscent of 2014 when employee protests erupted after Demoulas was ousted, which ultimately led to a buyout and his return.

As the situation unfolds, the board remains optimistic about Market Basket’s future without its former CEO. “The record shows that it is simply untrue that Market Basket could not possibly function without him and his lieutenants at the helm,” the complaint stated.