Market Basket CEO is put on leave in new spat at family-controlled supermarket chain

Market Basket’s board has placed CEO Arthur T. Demoulas on leave, alleging that he was plotting a work stoppage among employees at the family-owned supermarket chain. The iconic New England grocery chain, Market Basket, with around 90 stores, is once again entangled in a family feud. The decision to sideline Demoulas was made due to concerns over oversight and disputed succession plans.

Market Basket, known for its high-quality yet affordable foods, has a rich history dating back to 1917 when Athanasios “Arthur” Demoulas, a Greek immigrant, opened a store in Lowell, Massachusetts. Despite its expansion to New Hampshire and Maine, internal family conflicts have persisted over the years.

The recent dispute arose from the board’s claim that Demoulas was orchestrating a work stoppage as improper retaliation against corporate oversight measures and for resisting a suitable succession plan. Demoulas, however, through a spokesperson, dismissed the board’s allegations as a cover-up for a hostile takeover.

The conflict within the controlling family members of Market Basket is not new. Over a decade ago, Arthur T. Demoulas faced a similar attempt to remove him as CEO by his cousin, Arthur S. Demoulas, leading to a period of turmoil and boycotts. The struggle for control between the two sides of the family has been ongoing for years.

Despite the current upheaval, the board assured that the ownership structure and employees’ pay and benefits, including profit-sharing, will remain unaffected.