On August 27, 2014, the shareholders of Market Basket reached a deal to sell the remaining 50.5% shares of the company to Arthur T. Demoulas and his sisters for $1.5 billion.
Arthur T. Demoulas is the CEO of Market Basket, but he owns just 28-percent of the company. His three sisters each have a 20-percent share, for a total of 60-percent. The other 12-percent of the company is in a trust for the family's grandchildren.
Wolkoff notes that Demoulas was originally suspended based on the allegation that he was attempting to disrupt the business and warns that Demoulas' team need not respond to his latest letter. "Even if he causes a disruption in Market Basket's business, that will not alter the position of the Board.
The public pressure campaign worked, and a deal was reached weeks later to sell the Market Basket chain to Arthur T. Demoulas for nearly $1.6 billion, bringing the saga to an end. Demoulas' spokesperson said Wednesday the company paid off the $1.6 billion in debt financed to purchase the company in December of 2024.
Arthur T. Demoulas, his two children and other executives were suspended by the board in May. The board said Demoulas was being investigated for "planning a work stoppage," while he said the suspension was cover for a "hostile takeover."
Why was Arthur Demoulas put on administrative leave?
Demoulas, has been placed on paid administrative leave as the company's board investigates what it describes as “credible allegations” of efforts to disrupt business operations. The board claims Demoulas may have been involved in planning a work stoppage at the supermarket chain.
(born February 15, 1958) is an American billionaire and businessman who is the former CEO of Boch Enterprises, a US$1 billion business consisting primarily of automobile dealerships in Norwood, Massachusetts and the current CEO of Subaru of New England. Ernie Boch Jr. Ernest Alexander Boch Jr.
Descendants of the founding Hoffmann and Oeri families own slightly over half of the bearer shares with voting rights (a pool of family shareholders 45%, and Maja Oeri a further 5% apart), with Swiss pharma firm Novartis owning a further third of its shares until 2021.
A Market Basket spokesperson said the Department of Homeland Security asked for the I-9s of employees in 2023 and that the investigation found the paperwork had not been properly updated, leading to the workers' suspensions.
Arthur T. Demoulas on Friday completed the purchase of the Market Basket chain. Demoulas and his relatives acquired the 50.5% of the shares they did not own in the company from another side of the family led by his cousin, Arthur S. Demoulas.
Customers and employees boycotted the company. The board of directors said this cost the company millions of dollars. Top leaders at Market Basket are exchanging blows after CEO Arthur T. Demoulas and other leaders were suspended, after the board of directors accused them of planning a work stoppage.
The Market Basket family saga continues. Eight weeks ago, the local supermarket chain placed popular CEO Arthur “Artie” T. Demoulas on leave, citing oversight concerns and disputed succession plans. The board alleges that Demoulas has been planning a work stoppage to disrupt the business.
Demoulas was suspended and other executives were put on paid leave on May 28. According to the board, the group was suspended for allegedly "encouraging a widespread work disruption" to show support for Demoulas. Joseph Schmidt, director of operations, and Tom Gordon, grocery director, were later fired.
— 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.
