Suspended Market Basket CEO Arthur T. Demoulas and the grocery chain’s board of directors met in Delaware on Wednesday for a mediation session aimed at resolving ongoing tensions within the company. Despite significant expectations surrounding the meeting, no resolution had been announced by either party as of Thursday afternoon, leaving the situation unresolved.
In the lead-up to this mediation, attorney Harvey Wolkoff of Quinn Emanuel Boston, the law firm overseeing the board’s investigation into Arthur T., noted that the mediation “is scheduled for one, or, if necessary, two days.” It remains uncertain whether a follow-up session was required or if it took place on Thursday. Details regarding the mediation, including its specific timing, were kept confidential by both sides leading up to the meeting.
Background of the Corporate Dispute
The mediation session represents a significant moment in a long-standing public dispute involving Arthur T. Demoulas and his three sisters: Frances Demoulas Kettenbach, Glorianne Demoulas Farnham, and Caren Demoulas Pasquale. The siblings jointly own a portion of Market Basket after purchasing the company for $1.6 billion from the faction of their family supporting their cousin, Arthur S. Demoulas, in the wake of protests that erupted following Arthur T.’s ousting as CEO in 2014.
Currently, rather than facing outright termination, Arthur T. and other executives aligned with him were placed on paid administrative leave pending an investigation initiated on May 28, 2023. In the weeks that followed, additional long-term employees were also put on leave, with some alleging they were dismissed for questioning the decision to place Arthur T. on leave. The board has disputed these claims.
In July, two executives who were put on leave along with Arthur T., Joe Schmidt and Tom Gordon, were officially terminated by the board. A judge later ordered both men to stay away from any Market Basket properties after they visited numerous locations shortly after their dismissal, despite the board’s instructions barring them from company grounds.
Board Composition Changes
Last month marked a notable shift in the board’s composition. The removal of Bill Shea, a longtime ally of Arthur T., left the board with just three members: Steven Collins, Michael Keyes, and Chair Jay Hachigian. The board had previously been comprised of five members, indicating a significant consolidation of power against Arthur T. and his supporters.
As the situation continues to unfold, the lack of communication from both parties following the mediation leaves many questions unanswered. Stakeholders within Market Basket and the broader community are left to wait for further developments as the internal conflict remains unresolved.
