"The decision to fire Artie T. came after months of tension between him and the Market Basket board of directors. The board placed Demoulas on paid leave in May, claiming he was planning a work stoppage. Board members accused Demoulas of "stonewalling the Market Basket Board" by refusing "to provide the Board with basic information about the Company and its plans or to comply with basic, lawful directives of the Board," according to a complaint filed on Tuesday in a Delaware court."
"The complaint also alleged that Demoulas refused to provide an annual budget to the board, give advance notice of significant expenditures, or meet with a single manager of the company, apart from the company's CFO. The board also accused him of not engaging in succession discussions. "Despite extensive efforts by the Board and Mr. Demoulas to come to terms, the mediation was not successful," Market Basket Board Chair Jay K. Hachigian said in a statement."
"The conflict dates back more than a decade, when the family feud over control of the company led to Artie T. being ousted temporarily in 2014, only to be reinstated following a massive employee-led protest. In recent years, Demoulas had a falling-out with his three sisters, who together own about 60% of Market Basket (20% each) while Demoulas holds 28%. Boston.com readers wasted no time in expressing their dissatisfaction with the firing, with many fearing the company's future without Artie T. at the helm."
Arthur T. Demoulas was fired as CEO of Market Basket after months of tension with the board. The board placed him on paid leave in May, alleging plans for a work stoppage and accusing him of "stonewalling the Market Basket Board" by refusing to provide basic company information and comply with lawful directives. The complaint alleges he failed to present an annual budget, give advance notice of major expenditures, meet with managers beyond the CFO, or engage in succession discussions. The conflict stems from a long-running family feud. Many loyal customers reacted angrily, with a majority of over 2,500 poll respondents planning a boycott and fearing for the chain's future.
Read at Boston.com
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