Market Basket CEO Arthur T. Demoulas Suspended Amid Controversy

TEWKSBURY, Mass. — Arthur T. Demoulas, the longtime CEO of Market Basket, has been suspended by the company’s board as they investigate his conduct, which includes allegations of planning a work stoppage. The Executive Board of Directors announced that Demoulas, known as ‘Artie T,’ is on paid administrative leave effective immediately.

In a statement, the board expressed concern over ‘credible allegations’ that Demoulas intended to disrupt the business operations. This concern follows simmering tensions between Demoulas and the board, with claims that he resisted appropriate oversight and potential succession planning.

Demoulas’s spokesperson, Justine Griffin, stated that two of Demoulas’s children, as well as several other executives, have also been placed on leave. Griffin condemned the board’s actions as a ‘farcical cover for a hostile takeover.’

The board, led by chair Jay Hachigian, has taken this drastic step not only due to the allegations but also because they believe Demoulas has consistently disregarded their directives over the past several years. The board had set expectations for Demoulas, including providing a budget and collaborating with other management, which they claim he has ignored.

“This has been brewing for years and has nothing to do with the other stockholders,” Hachigian said. He added that the company, which operates 90 stores and employs 30,000 people, is currently in good shape and emphasized that there are no plans to sell the business.

The history of conflict within the Demoulas family dates back to 2014 when a similar power struggle led to widespread employee protests and a customer boycott that ultimately resulted in a buyout deal worth $1.6 billion led by Arthur T. Demoulas, bringing an end to a bitter family feud.

Local shoppers expressed their concerns about the recent developments. Many remember the protests that occurred back in 2014, questioning whether the cycle would repeat itself. However, the board reassured employees and customers that operations would continue as usual, stating that there would be no changes to jobs, salaries, and benefits.

As the board conducts its investigation, the outcome remains uncertain. Demoulas’s suspension marks another chapter in the complex history of the Market Basket chain, a well-known grocery store company with deep ties to its community.