Family dispute at Market Basket: CEO Arthur T. Demoulas placed on vacation!

Family dispute at Market Basket: CEO Arthur T. Demoulas placed on vacation!

Market Basket's family dispute escalates again after CEO Arthur T. Demoulas and five other company employees were placed on paid leave. This was driven by ongoing tensions within the Demoulas family, who are fighting for control of the company. Loud IT Boltwise The board accuses Demoulas of planning to stop work in retaliation for allegations against him. Steven Collins, a member of the board of directors, said he would investigate the allegations against Demoulas.

There are concerns that Demoulas, who owns 28% of the company, is making arbitrary decisions, including succession planning for his children. Demoulas spokeswoman Justine Griffin has blamed the furloughs on his sisters and their board members, calling the investigation a farce that is merely a cover for a hostile takeover.

Background and protests

Market Basket, founded more than a century ago by the Demoulas family in Lowell, operates more than 90 stores in New England. Corporate conflict is not new; in 2014, the ouster of Arthur T. Demoulas by a board controlled by his cousin, Arthur S. Demoulas, led to massive protests supported by thousands of employees. These protests caused empty shelves in stores and even led to firings of employees who were held responsible for their actions against the company.

The uncertainty surrounding Market Basket's future at the time finally ended on August 27, 2014 with a takeover deal by Arthur T. Demoulas for almost $1.6 billion. Looking back on this turbulent time, the company would like to thank its customers for their support.

Current developments and financial aspects

The current circumstances surrounding Arthur T. Demoulas have led to the decision that he will receive full pay and company profits during his leave of absence. The situation remains unchanged for employees, and the company's popular profit-sharing plan remains in place. However, Collins does not believe the current tensions will have a negative impact on customers, stressing that this is an everyday dispute between the board and the CEO.

In another development, Market Basket plans to pay off remaining debt from the acquisition deal over the next few months and recently opened a new store in Topsham, Maine. It remains unclear how long the investigation into the allegations against Demoulas will actually take.