Market Basket Board Ousts CEO Arthur T. Demoulas

Lead Market Basket’s board voted unanimously Wednesday to remove President and CEO Arthur T. Demoulas after failed mediation in Delaware, ending months of family dispute over corporate oversight in Tewksbury, Mass.

Nut Graf The board’s decision marks a dramatic turn in the long-running Demoulas family feud that has gripped the New England grocery chain, raising questions about leadership succession and the future of its profit-sharing culture.

Board Vote and Mediation Failure

The three-member board-dominated by the Demoulas sisters who collectively control 60 percent of the company-filed papers in the Delaware Court of Chancery to formalize Demoulas’s removal. Mediation sessions on September 3 and by videoconference Tuesday yielded no agreement on demands for transparency and a succession plan.

Key Points

• Arthur T. Demoulas had been on paid administrative leave since May amid allegations he plotted a work stoppage.
• Board Chair Jay Hachigian emphasized that operations, profit-sharing and bonuses will continue unchanged.
• Two longtime executives loyal to Demoulas were previously dismissed for insubordination.

Impact on Operations

Board leaders assured employees and customers that the grocery chain’s no-frills model and low-price promise remain intact. However, Demoulas’s exit revives memories of the 2014 protests and boycotts that followed his previous removal, signalling potential unrest among staff and patrons.

Next Steps

The board has yet to name an interim CEO. Legal proceedings in Delaware aim to clarify the grounds for removal and may determine whether Demoulas can contest the action. Stakeholders await further updates as Market Basket navigates this pivotal leadership transition.