Market Basket CEO Claims ‘Hostile Takeover’ As He’s Placed On Leave

Why did the Market Basket CEO get fired?

According to WCVB, Market Basket’s board of directors placed CEO Arthur T. Demoulas and several others on paid administrative leave after he allegedly planned to “disrupt” business operations.

“While Mr. Demoulas is on leave, an investigation will be conducted that will include a review of credible allegations that the CEO began to plan a disruption in the business and operations of Market Basket,” the board of directors wrote in a memo obtained by WCVB.

“The Board believes that these steps were taken by Mr. Demoulas and others in retaliation against the board for requiring that the CEO work collaboratively with the Board regarding basic company operations and plans.”

Demoulas’ spokesperson shared a statement

A spokesperson for Demoulas also released a statement, denouncing the recent probe into the recent allegations.

“Today, Mr. Arthur T. Demoulas was ousted from his position as President and CEO of Market Basket by his three sisters and their three appointed board members – Jay Hachigian, Steven Collins, and Michael Keyes. His daughter, Madeline, and son, Telemachus, and several other Market Basket executives were also placed on leave,” Justine Griffin, Demoulas’ spokesperson, said, per WCVB.

“Under Mr. Demoulas’ leadership in December of 2024, the company paid off $1.6 billion in debt that financed the purchase of the company in 2014. The company is currently operating at its peak performance and the notion that this board is going to conduct an investigation is a farcical cover for a hostile takeover.”

The memo from the board was sent to Market Basket employees and management, and it assured them that operations would continue as normal.

“Market Basket is a place that our local communities consistently count on for their daily needs and their livelihoods – actions from the top that put that at risk would harm Market Basket and its customers, vendors, and you, our valued associates. We are seeking to avoid that and ensure our business and culture remain intact. During this time, the Board will rely on the existing dedicated management team to ensure that the operations of Market Basket will maintain the quality and superb service that customers expect and enjoy,” the memo stated, according to WCVB.

The news about Demoulas comes just over a decade after he was terminated from his position in 2014, when his cousin, Arthur S. Demoulas, took over the company. Demoulas’ initial firing led to worker-led protests and customer boycotts demanding that the company overturn his firing, as he had brought many positive things to the New England community, according to a 2014 article from Massive.