TEWKSBURY, Mass. — Market Basket’s board of directors on Friday shared an update on the status of the investigation into suspended CEO Arthur T. Demoulas.
The Tewksbury-based grocery chain’s board placed Demoulas on paid administrative leave on May 28 over allegations that he had been considering leading a work stoppage.
The investigation into Demoulas “is nearly complete,” according to an update issued on behalf of the board by law firm Quinn Emanuel, which has been reviewing the allegations of a planned disruption of Market Basket operations.
Harvey Wolkoff, the founding partner of Quinn Emanuel’s Boston office, said the findings of the investigation won’t be made public until the board and Demoulas meet with a neutral mediator to “determine if the long-standing issues between them can be resolved.”
The mediation with Demoulas is scheduled for September 3, according to Wolkoff.
“Any further action will depend on the outcome of that mediation, consistent with the Board’s fiduciary duties,” Wolkoff said in a statement. “It is the hope of the Board that a constructive resolution can be reached.”
This update comes after the beloved grocery chain made headlines with the firings of two longtime company executives.
On Tuesday, the board informed Joseph Schmidt, the chain’s director of operations, and Tom Gordon, the grocery director, that they had been terminated for making false and derogatory remarks about the company and people associated with it, as well as inappropriate communications with colleagues.
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.
Francis, Glorianne, and Caren Demoulas, the sisters of Arthur T. Demoulas, are majority shareholders in Market Basket.
Methuen Mayor David P. Beauregard, Jr., later penned a letter to the board, calling for 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.
Beauregard also urged the company to immediately reinstate Demoulas before it’s too late, reminding board members that residents of his city shop at Market Basket to make ends meet as they navigate high prices and food insecurity.
Beauregard believes Market Basket is currently “drifting dangerously off course.”
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