Market Basket CEO Arthur T. Demoulas Fired After Mediation Fails

Market Basket CEO Arthur T. Demoulas has been fired by the board of directors. The decision was announced Wednesday after mediation efforts failed in Delaware. The Massachusetts-based supermarket chain is once again at the center of a leadership struggle.

The board said mediation sessions with Demoulas last week did not resolve the dispute. They voted to remove him as president and CEO. A legal filing has also been made in Delaware to confirm his termination.

Market Basket Board Confirms CEO Removal

Board chair Jay Hachigian said both sides met on September 3 for confidential talks. A second meeting took place on September 9 by video. Former Vice Chancellor Joseph Slights III acted as mediator.

According to the board, Demoulas resisted oversight for years. They said he often acted as the sole authority. The filing shows he owns 28.4 percent of the company. His three sisters hold 61.3 percent. The remaining 10.3 percent is in a trust for their children.

The board assured workers that the company’s culture, profit-sharing, and bonuses will not change. They promised customers that Market Basket prices will stay the same. According to CBS Boston, the supermarket chain will continue normal operations.

Years of Disputes at Market Basket

This is not the first time Demoulas has been forced out. In 2014, he lost control when the board was under his cousin’s leadership. Workers walked out in protest, and customers boycotted stores. That strike lasted six weeks until Demoulas and his sisters regained control.

This year, the conflict started again. In May, the board suspended Demoulas and several loyal executives. They suspected a planned work stoppage. Demoulas denied the charge and called it a hostile takeover. In July, two of his close allies were fired. A judge later issued a restraining order against them.

The dispute has left workers uneasy. A longtime director described a culture of “fear and hostility.” Supporters of Demoulas accused the board of punishing dissent. The board countered that he waged an internal campaign against them.

What Happens Next for Market Basket

The legal battle now moves to Delaware, where the company is incorporated. Demoulas is contesting the firing in court. The outcome could shape the future of the supermarket chain.

For now, the board insists business will run as usual. But the loss of a popular leader may stir tensions. Market Basket employees and shoppers remember the 2014 crisis well. Both sides may brace for another period of uncertainty.

The Market Basket CEO fight is far from over. The board has removed Arthur T. Demoulas, but the court case could extend the battle. His exit once again puts the future of the iconic New England grocer in question.

FYI (keeping you in the loop)-

Q1: Why was Market Basket CEO Arthur T. Demoulas fired?

The board said mediation failed and accused him of ignoring oversight. They voted to remove him as CEO and president.

Q2: Who owns Market Basket now?

Demoulas owns 28.4 percent. His three sisters hold 61.3 percent. The rest is in a trust for their children.

Q3: What happened in 2014 at Market Basket?

Demoulas was ousted by his cousin’s board. Workers staged a six-week strike. Customers boycotted stores until he returned.

Q4: Will Market Basket prices and bonuses change?

The board promised that pay, bonuses, and low prices will remain the same. They said operations will not change.

Q5: What is next in the dispute?

The case goes to court in Delaware. Demoulas is fighting his removal. The court will decide if his firing was valid.