Fired Market Basket CEO’s spokesperson: The board ‘had no intention of reinstating’ him
Market Basket’s board of directors “had no intention” of ever reinstating former CEO Arthur T. Demoulas, a spokesperson for Demoulas argued Wednesday after the board unanimously voted to fire him Tuesday night .
The board placed Demoulas and two other company executives on paid leave in May, accusing them of preparing to lead a work stoppage to protect the CEO amid disputes with the board and Demoulas’ sisters — the latter of whom together own a majority share in the company.
The CEO responded by quickly denying the board’s claims , calling it a facade for a “hostile takeover” of the grocery store chain.
Market Basket’s board ultimately voted to fire the two other company executives in July, and despite mediation sessions between the former CEO and the board on Sept. 3 and 9, the parties could not come to an agreement on how Demoulas would return to the company.
“Arthur T. Demoulas is deeply disappointed that mediation failed despite his very determined efforts to reach a resolution,” the former CEO’s spokesperson, Justine Griffin, said in a statement.
Demoulas has had “a single goal” since being placed on leave in May: getting back to work in his role leading Market Basket, Griffin said.
“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 said.
But, over time, “it became clear to us that this was not a good faith effort by the board or his sisters to reach agreement” on the issues brought up during mediation, Griffin said.
Market Basket’s board voted to fire Demoulas during a 10:30 p.m. meeting Tuesday night “without providing him any meaningful opportunity to be heard,” Griffin said, claiming that this is in violation of the grocery store chain’s bylaws.
“It is now crystal clear that they had no intention of reinstating Mr. Demoulas,” she said.
In its statement about Demoulas’ firing, the board tried to calm concerns about changes to Market Basket’s lauded company culture.
“We assure our valued associates and customers that, as we have demonstrated over the past several months, Market Basket will not change its operations, profit-sharing, bonuses or culture, and will continue to offer the best groceries at the lowest prices anywhere in New England — well into the future,” Board Chair Jay K. Hachigian said.
Demoulas’ was previously fired from his position as Market Basket CEO 11 years ago, after which another wing of the Demoulas family — led by his cousin, Arthur S. Demoulas — took over for a time.
Arthur T. Demoulas’ ousting in 2014 sparked two months of protests by Market Basket employees that ultimately led to him and his sisters buying the other family members out of the company .
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