Market Basket CEO is suspended: How it would affect the supermarket?
Arthur T. Demoulas, CEO of Market Basket, has been suspended by the board over allegations of planning a work stoppage.
Arthur T. Demoulas, CEO of the supermarket franchise Market Basket, has been suspended. After a long-term family feud, Demoulas is accused by the board of planning a work stoppage to disrupt the business. Other employees with him are now on paid leave.
The company has at least 90 stores across the U.S. The supermarket chain's roots extend back to 1917, to the Demoulas ancestor Athanasios, a Greek immigrant who opened a store in Lowell, Massachusetts. There are Market Basket locations in New Hampshire, Maine, and Rhode Island.
What does Demoulas say about his suspension?
Justine Griffin, a spokesperson for Demoulas, published a statement that was quoted by local news outlets. Griffin called the board's decision "a farcical cover for a hostile takeover." According to WBUR, the representative affirmed that Demoulas' sisters and their active board members were responsible for this decision.
According to the board, despite the accusation of planning a work stoppage, "Demoulas has also resisted an appropriate succession plan for Market Basket, asserting that he has the unilateral right to appoint his children to succeed him." For that, he would need the board's input.
In 2014, employees and clients for Market Basket boycott the company for firing Arthur T. Demoulas. Photo: PBS
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How will the suspension affect Market Basket?
More than ten years ago, there was another attempt to suspend Arthur T. Demoulas and remove him from the company. He was fired in 2014 by the board led by his cousin, Arthur S. Demoulas. But his workers, who called them "Artie T" and "ASD," went on strike, which included boycotts by customers.
There is no official statement about that, but since the family feud has not been resolved over these years, a new strike may happen again. The CEO's on-leave status will not represent a problem for the company, according to the board. However, it is possible that Market Basket may not be fully operational in the coming months.
