Market Basket CEO Arthur T. Demoulas, widely known as “Artie T,” has been suspended by the company’s board amid an ongoing investigation into alleged misconduct. The board’s statement cites credible allegations that Demoulas planned a disruption of operations via a work stoppage.
His children, Madeline and Telemachus, along with several other executives, were also placed on leave. Demoulas denounced the move as a “hostile takeover,” comparing it to a corporate coup masked as a legitimate investigation. This dramatic development has stirred strong memories of the 2014 crisis, where employee loyalty to Demoulas led to widespread protests and a customer boycott.
Demoulas Faces Allegations of Nepotism, Echoing Market Basket’s Tumultuous 2014 Power Struggle
According to a spokesperson for Demoulas, the suspension was orchestrated by his three sisters and their allies on the board—Jay Hachigian, Steven Collins, and Michael Keyes. They accused Demoulas of resisting succession planning and attempting to install his children in leadership roles without proper board oversight.
While Demoulas holds a significant 28% stake in the company, the board claims that he has overstepped his authority by undermining collaborative decision-making. They framed the suspension not as a termination, but as a necessary measure during the inquiry into his alleged disruptive planning.
Arthur T. Demoulas Suspension Sparks New Market Basket Power Clash as Board Cites Misconduct and NepotismThis conflict mirrors the infamous 2014 Market Basket power struggle, when Demoulas was ousted by his cousin, Arthur S. Demoulas. That move sparked a massive employee protest and customer backlash, ultimately resulting in Demoulas buying the company for $1.6 billion.
His recent gestures, like paying off the acquisition debt in 2024 and awarding bonuses to employees in 2023, have further cemented his popularity. However, the board now suggests that internal friction has reached a point of operational concern, despite the company performing well.
Board Cites Longstanding Tensions, Vows Stability Despite CEO Suspension and Public Concern
Board chairman Jay Hachigian emphasized that the rift has been years in the making and is not a sudden reaction. He described difficulty in managing even basic corporate functions with Demoulas and denied any intention to sell the company. Hachigian also claimed that the investigation and subsequent suspensions were necessary due to ongoing resistance from Demoulas and his team. While they are mindful of employee reactions, the board remains confident there won’t be a repeat of the 2014 turmoil, citing the company’s current strong financial and operational position.
Many loyal Market Basket customers expressed disbelief and concern over the suspension, recalling the impact of the 2014 protests. Some questioned the wisdom of revisiting a power struggle that previously destabilized the company, while others worried about a potential sale. Still, Market Basket assured the public that there would be no changes to employee roles, salaries, or the profit-sharing plan. With 90 stores and 30,000 employees across the Northeast, the board promised continued commitment to the company’s values, products, and pricing, aiming to avoid disruption for both workers and shoppers.
