Sign up for the Today newsletter
Get everything you need to know to start your day, delivered right to your inbox every morning.
Fired Market Basket executives speak out on terminations, ‘pre-planned coup’ investigation
Joseph Schmidt and Tom Gordon shared further insight into why they believe the company's board fired them.
Two terminated Market Basket supervisors spoke out about their firings at a press conference in Reading Wednesday morning, offering further insight into why they believe the company’s board decided to let them go – and hinting at what’s next for the beloved supermarket chain.
Joseph Schmidt, the company’s director of operations, and Tom Gordon, the director of grocery operations, were fired Tuesday. Gordon was with the grocery chain for nearly 50 years, and Schmidt for 39 years.
“It’s very disheartening. I’ve given my life to this company, which I enjoyed,” Gordon said of his termination.
In a statement, Market Basket board of directors said the terminations came as a result of a recent internal investigation that found the two supervisors engaged in “insubordination, making false and derogatory remarks about the company and people associated with it, and inappropriate communications with colleagues.”
Advertisement:
CEO Arthur T. Demoulas pushed back against the investigation allegations, arguing the two supervisors were “just collateral damage in this pre-planned coup” to oust him from the helm of the company.
Demoulas and his two children, along with Schmidt, Gordon, and Paul Quigley, a district supervisor, were suspended with pay on May 28, after the company’s board of directors alleged they were planning a work stoppage. Quigley and Demoulas remain on leave.
‘This was not a serious investigation’
At a press conference Wednesday morning, the two former supervisors again denied allegations that they were planning a work stoppage, and reiterated concerns about the board’s motives.
Advertisement:
“[The board] put a bunch of allegations out there, and they’re telling a story, and they’re putting a narrative together. They have not met their prima facie case to establish that there was anything inappropriate going on,” Schmidt said.
Justine Griffin, Artie T. Demoulas’ spokesperson, defended Gordon and Schmidt and also questioned the seriousness of the board’s investigation.
“Over the course of years, [Gordon and Schmidt have] built this staggeringly successful company with a unique culture that drives it. They are serious businessmen, and this was not a serious investigation. [The board’s] statement shows just how Mickey Mouse amateurish it was,” she said.
Schmidt said he believes Demoulas’ three sisters – Frances, Glorianne, and Caren – tasked the board with ousting Artie T. and staff loyal to him in order to instill Michael Kettenbach as CEO. Kettenbach, currently the company’s deli director, is Frances Demoulas’ son.
“It’s just a long plan that has probably been in motion for a long time to remove the boss and the top management of the company and instill the people they want,” Gordon said.
‘They should all resign’
Schmidt said he first learned about his termination on Tuesday via a memo the board had sent to company staff announcing that new managers would be promoted to roles held by himself and Gordon. That same day, Schmidt and Gordon said they received a letter via courier followed by a phone call from board member Steve Collins informing them they were being terminated.
Advertisement:
“That is completely counter cultural to how Market Basket operates, we would never do that,” Schmidt said. “That’s disrespectful.”
Schmidt went on to call for three members of the board – Jay Hachigian, Steven Collins, and Michael Keyes – to resign.
“They should all resign from their positions, because what they’ve done is a tremendous disservice to this organization,” he added.
What’s next for Market Basket?
When asked about the company’s future if Artie T. is also terminated by the board, Schmidt said he fears the supermarket culture could suffer.
“If Mr. Demoulas does not come back, the company’s changed. And it’s not going in a very good place if it continues on the trajectory we have, especially when there’s three board members that, in my opinion, are completely out of touch with the culture of the organization,” he said.
“If somebody thinks that either Mr. Gordon or myself are just going to go away at this point without standing up for the culture of the company for a period of time, they’re solely mistaken. I’m not going anywhere, and neither is he,” Schmidt added.
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