TEWKSBURY, Mass. — Suspended Market Basket CEO Arthur T. Demoulas has accused the Tewksbury-based grocery chain’s board of directors of silencing employees who are allied with him ahead of a planned meeting with a neutral mediator.
A spokesperson for Demoulas confirmed Tuesday that mediation talks are scheduled to begin on Wednesday, September 3.
Demoulason was placed on paid administrative leave on May 28 over allegations that he had been considering leading a work stoppage.
Last week, Harvey Wolkoff of Quinn Emanuel announced on behalf of the company’s board of directors that the investigation into Demoulas was “nearly complete.”
Demoulas claimed in Tuesday’s statement that discussions about a mediation have been going on for “more than two weeks.”
“That fact alone illustrates how irresponsible Directors Jay Hachigian, Steven Collins, and Michael Keyes were early last week, when they fired Joe Schmidt and Tom Gordon and then promoted a series of employees to take their places,” Demoulas wrote.
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.
“This was all done in a clear attempt to get out ahead of the mediation process in an effort to further silence the associates within the company who are demanding the return of the senior management team,” Demoulas alleged in his latest statement.
Methuen Mayor David P. Beauregard, Jr., recently called for the return of Demoulas and an immediate end to “whatever is happening behind closed doors.”
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.
“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 in a letter to the board.
Demoulas said he hopes to avoid litigation and reach a “quicker, amicable resolution” that is in the best interest of Market Basket’s associates, customers, and the communities it serves.
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