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Market Basket CEO Arthur T. Demoulas Suspended as Board Probes Potential Work Stoppage

The board claims it must act on evidence that the CEO plotted a walkout to resist new governance oversight requirements.

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Market Basket
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Overview

  • The board placed Arthur T. Demoulas and his children, Madeline and Telemachus, on paid administrative leave pending an investigation into allegations of planning a disruptive work stoppage.
  • The executive committee says it uncovered credible evidence that the proposed walkout was meant to retaliate against demands for greater operational oversight and succession planning.
  • Demoulas’s spokesperson described the investigation as a “farcical cover for a hostile takeover,” accusing board members aligned with his sisters of orchestrating the move.
  • Market Basket’s existing management team will oversee the chain’s 90 New England stores and 30,000 employees while the executive review continues.
  • Many long-time shoppers say they stand ready to boycott the chain in support of Demoulas, evoking the large-scale protests that ended the 2014 family feud.