READING, Mass. — Two former Market Basket executives who were fired this week blasted the company’s board of directors on Wednesday over the “preposterous” allegations that have been leveled against them.
Joseph Schmidt, the Tewksbury-based supermarket chain’s director of operations, and Tom Gordon, the grocery director, were both terminated from their positions on Tuesday.
According to the Market Basket Board of Directors, both Schmidt and Gordon were fired for making false and derogatory remarks about the company and people associated with it, and inappropriate communications with colleagues.
The company claimed Schmidt falsely told colleagues that if Arthur T. was removed as CEO, they would lose their bonuses and profit sharing. The investigation also highlighted comments about the Demoulas sisters, who are the majority shareholders in Market Basket.
They include Gordon saying, “The three girls are evil,” “choose sides wisely,” and “those three sisters are hell bent on getting the boss and his kids out of here, and we gotta stick together.”
Schmidt and Gordon spoke out about their firings during a press conference outside Market Basket’s store in Reading.
“There was not one credible piece of information to sustain that there was any time of work stoppage that either myself or Mr. Gordon were involved in,” Schmidt said. “We told you eight weeks ago that the allegations were preposterous, and we tell you today that the allegations are preposterous.”
The firings of Gordon and Schmidt come weeks after Market Basket CEO Arthur T. Demoulas was placed on paid administrative leave amid an investigation into allegations that he had been considering leading a work stoppage.
The Market Basket Board of Directors alleged that an internal investigation revealed that Schmidt and Gordon directly encouraged employees to defy their supervisors and slow down and disrupt operations at the grocery chain.
Schmidt and Gordon called their firings a “pre-planned coup” spearheaded by the Demoulas sisters, who are majority shareholders in Market Basket.
“I believe they are doing this at the behest of the three sisters, Francis, Glorianne, and Caren, of the Demoulas family. Those are Arthur T. Demoulas’ sisters,” Schmidt said. “They have hired the Board of Directors. They want their brother out of the company.”
Schmidt claimed the Board targeted him and Gordon because they’re loyal to Arthur T. Demoulas and stand by the company’s culture.
“If Mr. Demoulas does not come back, this company is changed, that’s my opinion, and it’s not going in a very good place,” Schmidt said. “Especially when there are three board members who are completely out of touch with the culture of this company.”
Schmidt added, “They want to say it’s a vibrant culture and it’s just not factual.”
Gordon, a 50-year veteran of Market Basket, and Schmidt, a 39-year employee, both said that they “intend to be back” with the company.
“We intend to be back. If people think we’re going somewhere, they’re sorely mistaken,” Schmidt said. “I am not going anywhere, and neither is he.”
The Board said that Schmidt and Gordon had to know their behavior would lead to this result.
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