Sign up for the Today newsletter
Get everything you need to know to start your day, delivered right to your inbox every morning.
Revisiting the Market Basket family saga
With CEO Arthur T. Demoulas on leave, the family feud over the supermarket chain’s power is back in the spotlight.
The family behind the beloved supermarket chain Market Basket is back in the spotlight as the tensions between its leadership leak into the news.
On Wednesday, Market Basket’s board of directors placed CEO Arthur T. Demoulas on paid administrative leave, as it investigates allegations of his conduct.
The board cited concerns over transparency and succession planning. Demoulas’s daughter, Madeline, and son, Telemachus, were also placed on leave.
Demoulas contested these actions, calling them a “farcical cover for a hostile takeover.”
If all of this sounds like déjà vu, it’s because it’s similar to what happened a little over a decade ago, when a family dispute between two cousins made national headlines.
Advertisement:
Only this time it’s not between cousins but between siblings.
Here’s a recap:
In June 2014, Arthur T. Demoulas was ousted from his job by his cousin, who was involved in a long-standing family feud. Rather than accept new management, workers decided to take a stand by walking out and staging protests.
Many loyal customers stood with the workers, deciding to go to different grocery stores as they boycotted the grocer. The only stops at Market Basket were to tape their receipts from other grocers on store windows.
About six weeks later, Arthur T. Demoulas reached a $1.6 billion deal to buy the company’s shares from rival family members led by his similarly named cousin, Arthur S. Demoulas. It took nearly 10 years to pay off the loan, with the final payment made in December.
Advertisement:
The day after the buyout, employees and customers rushed back to the stores.
Business remained as usual for the years that followed. Arthur T. Demoulas even surprised his workers with bonuses during the 10th anniversary of the Market Basket walkouts.
Market Basket, known for its “more for your dollar” approach, continued to expand across New England. The store boasts new openings across Massachusetts and Rhode Island and now operates over 90 stores from Cape Cod to southern Maine.
There’s no question that customers “love” Market Basket, which boasts having no self-checkout lines and is known for its affordable prices.
However, customers are questioning where their loyalty should lie during the current shake-up, with rumblings online of an employee walkout and boycott.
Unlike the last go-around, Arthur T.’s three sisters appear to support the board’s decision, according to Axios, perhaps because it appears that he was planning to have his children succeed him.
So, will history repeat itself? Tell us what you think.
Would you support another Market Basket walkout?
To comment, please create a screen name in your profile
To comment, please verify your email address
Conversation
This discussion has ended. Please join elsewhere on Boston.com