TEWKSBURY, Mass. — Market Basket on Tuesday named a replacement for Arthur T. Demoulas, the company’s longtime CEO, who was fired last week after a monthslong investigation into allegations that he had been considering leading a work stoppage.
The Tewksbury-based grocery store chain’s board of directors announced that Donald T. Mulligan, a 42-year veteran of the company, is taking over the role of chief executive officer on an interim basis.
“Don Mulligan is the voice of consistency at Market Basket, one that our associates and customers can count on to proudly continue the same thriving culture and the ‘More For Your Dollar’ shopping experience,” board chair Jay K. Hachigian said in a statement shared with Boston 25 News. “The board has worked closely with Mr. Mulligan and has come to appreciate his exceptional business acumen, the respect and admiration our associates have for him, and his deep understanding of the history and culture that make Market Basket so special.”
Mulligan was hired full-time by the company in 1983 and worked his way up to a promotion to chief financial officer in 1999, a position he has held since then.
Hachigian said the Mulligan is also a Lowell native, as well as a graduate of Lowell High School and UMass Lowell.
“We are thrilled to have a homegrown leader of Mr. Mulligan’s caliber step into the role of Interim CEO to guide Market Basket and ensure seamless leadership for our associates, customers, and communities,” Hachigian added.
Demoulas was removed as president and CEO on Sept. 9 after an “unsuccessful” mediation session with the company’s board.
Demoulas had allegedly “forced the board to choose between accepting his autocratic control of Market Basket or terminating him in order to protect a vibrant and growing business that cannot flourish over the long-term under the leadership of a dictator.”
Justine Griffin, Demoulas’ spokesperson, called the board’s firing of Demoulas a “farcical cover-up for a coup.”
“The so-called investigation was designed from the start to falsely tarnish the reputation of Mr. Demoulas and his leadership team,” Griffin said.
Demoulas, the longtime CEO of Market Basket, was put on leave in May after the company’s board accused him of planning a work stoppage.
In the weeks that followed, several other executives loyal to Demoulas have also been fired, including Joseph Schmidt and Tom Gordon, who were both banned from setting foot on the grocery store chain’s property.
Schmidt and Gordon also called their firings a “pre-planned coup” spearheaded by the Demoulas sisters, who are majority shareholders in Market Basket.
The three Demoulas sisters, Frances Kettenbach, Glorianne Demoulas Farnham, and Caren Demoulas Pasquale, later voted to oust longtime board member Bill Shea, their brother’s last remaining ally.
The Market Basket board of directors consists of Hachigian, Steven Collins, and Michael Keyes, all of whom were appointed by the three Demoulas sisters, who are majority shareholders.
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