METHUEN, Mass. — A Massachusetts mayor is speaking out after a pair of longtime Market Basket executives were fired this week, calling on the company to bring back CEO Arthur T. Demoulas, who has been on leave for nearly two months.
In a letter addressed to Demoulas Super Markets, Inc., Methuen Mayor David P. Beauregard, Jr. called for an immediate end to “whatever is happening behind closed doors.”
“The City of Methuen is home to two Market Basket stores. They’re busy, reliable, and essential. They help thousands of local families afford groceries every week,” Beauregard wrote. “They employ many Methuen residents. And they represent something that’s become far too rare in today’s economy - a business model that puts people first and still manages to work.”
Beauregard’s letter comes as uncertainty swirls at the top of the Tewksbury-based grocery store chain.
On Tuesday, the Market Basket Board of Directors informed Joseph Schmidt, the Tewksbury-based supermarket chain’s director of operations, and Tom Gordon, the grocery director, that they had been terminated for making false and derogatory remarks about the company and people associated with it, as well as inappropriate communications with colleagues.
The Board claimed Schmidt, a 39-year employee, falsely told colleagues that if Arthur T. was removed as CEO, they would lose their bonuses and profit sharing. Their investigation also highlighted comments Gordon, a 50-year veteran of the company, allegedly made about the Demoulas sisters, who are the majority shareholders in Market Basket.
A day after their firings, Schmidt and Gordon blast the Board over the “preposterous” allegations, saying a “pre-planned coup” spearheaded by the Demoulas sisters is underway.
Francis, Glorianne, and Caren Demoulas, the sisters of Arthur T. Demoulas, are majority shareholders in Market Basket.
Beauregard expressed concern that the ongoing war of words amongst leadership could undo all of the success Market Basket has had since walkouts and boycotts upended the company more than a decade ago.
“All of that is now at risk because of yet another round of boardroom drama - the same kind of power struggle that nearly brought this company to its knees in 2014,” Beauregard said. “You remember how that ended, right? With customers and employees standing shoulder-to-shoulder to demand the return of Arthur T. Demoulas, the one leader who actually understood what made Market Basket different.”
Arthur T. Demoulas was placed on paid administrative leave on May 28 amid an investigation into allegations that he had been considering leading a work stoppage.
Beauregard urged the company to resolve its internal dispute and bring back Arthur T. Demoulas before it’s too late, reminding Board members that residents of his city shop at Market Basket to make ends meet as they navigate high prices and food insecurity.
“Market Basket is too important to Methuen - and to New England - to be treated like some corporate chessboard. My city’s residents rely on those stores to feed their families. Many rely on those jobs to pay their bills. And what they see right now is a company drifting dangerously off course,” Beauregard wrote. “It’s a lifeline. It’s where they stretch their paychecks, feed their families, and count on fair prices without the gimmicks.”
Beauregard continued, “So on behalf of the City of Methuen, I’m calling on the Market Basket board to do the right thing: resolve this internal dispute and bring back Arthur T. Demoulas - before the damage becomes irreversible.”
Demoulas’ suspension came 10 years after he was fired by a board controlled by Arthur S. Demoulas, his cousin and rival. After being sacked, store workers staged a walkout in support of Arthur T. that lasted six weeks.
To protest, hundreds of warehouse workers and drivers refused to deliver fresh produce, leaving shelves depleted. Not only did the workers stick together, but customers soon followed by boycotting the stores in solidarity.
Customers began to shop elsewhere because they couldn’t find fresh food at Market Basket, while others stayed away in a show of support for workers and Arthur T. The usually crowded stores turned into ghost towns, with only a trickle of customers coming in.
After weeks of pressure from suppliers suffering lost revenue, and the governors of Massachusetts and New Hampshire getting involved in work negotiations, the company announced that an agreement had been reached for Arthur T. to pay $1.6 billion for the 50.5 percent share of the company owned by Arthur S. and other family members.
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