WALTHAM, Mass. — The ousted and long-beloved head of Market Basket, Arthur T. Demoulas, has lost a court battle seeking reinstatement after a Delaware judge ruled that his firing was “valid."
Demoulas was removed as president and CEO of the Tewksbury-based grocery store chain, months after he was suspended over allegations that he had been considering leading a work stoppage.
“From what I’ve heard, he was a good guy, and he treated his employees well,” one shopper told Boston 25 News.
The judge sided with Market Basket’s Board of Directors, a group that includes Demoulas’ three sisters.
“It’s too bad families can’t get along,” Carol Reardon, a longtime Market Basket shopper, said.
The court documents explain the board’s decision to fire Demoulas last spring.
“They rationally concluded that the CEO was getting ready for a fight. Believing in good faith that another walkout and boycott would be disastrous for the company, they took action,” the filing read.
The judge determined Demoulas didn’t prove his case against the board.
“Arthur had the burden at trial to prove that a majority of the Current Directors acted in bad faith. He failed to carry his burden,” the judge concluded.
“I felt bad for him. I hope he does an appeal,” Reardon reacted.
While faithful shoppers say they do feel for the Market Basket icon, this round of the family’s fallout hasn’t been too reminiscent of 2014.
It was in 2014, the community rallied behind Artie T. in large numbers, to the point many wouldn’t shop at Market Basket without him in charge.
“I mean, this is where I shop. They are the cheapest, so just keep the low prices,” another shopper explained.
“The prices are good, and their food is really good,” Kailey Goulet added.
The board of directors, putting the battle behind them, wrote in part, “Market Basket will continue to be a family-owned and operated business, offering the lowest prices and best value for customers, creating good jobs with profit sharing for associates, and supporting its customers and communities—well into the future.”
Though they went on to thank him for all he’s done, Demoulas said in a separate statement, he was prepared for the uphill fight.
“Arthur T. Demoulas filed his response to the Board’s lawsuit knowing there were high hurdles given the broad latitude Delaware courts give to Boards of Directors. Market Basket is an incredible success by every measure. As his father before him, the late Telemachus A. Demoulas, Arthur T. has devoted his entire working life to building and growing Market Basket in a way that has brought benefit to all stakeholders – its Associates, its customers, the communities that Market Basket serves, and its shareholders.”
Several other executives loyal to Demoulas were also fired in the wake of his removal, including Joseph Schmidt and Tom Gordon, who were both banned from setting foot on the grocery store chain’s property.
Schmidt and Gordon called their firings a “pre-planned coup” spearheaded by the Demoulas sisters, who are majority shareholders in Market Basket.
The board says Demoulas remains an important shareholder and will continue working with him in the future.
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