355:
address their demands. They also warned that any employee who walked out would be fired. A message on the Save Market Basket
Facebook page said that the employees at Market Basket headquarters would not be reporting to work the next day July 18, 2014. On July 18, 2014, protests with between 2,500 and 3,000 employees and customers were held at the company's Tewksbury headquarters and other locations demanding the reinstatement of Arthur T. 300 warehouse workers and 68 drivers refused to make deliveries, which left store shelves severely depleted. Customers chose not to shop at Market Basket due to the lack of product and/or as a form of protest. Stores that usually had over 100 customers in them at one time now had only a few. Most employees did not strike, thus the stores remained fully staffed but employees had little or nothing to do. Many of them joined the protesters outside or performed acts of protest inside the store, such as writing "Boycott Market Basket" on the window, placing signs encouraging customers to not shop there, leaving frozen dairy products out to spoil, or refusing to stock shelves.
306:, switched loyalties, tipping the majority vote from Arthur T. to Arthur S. On July 18, 2013, the board did not adopt a motion to dismiss Arthur T. as CEO after protesters gathered outside the meeting. Five days later, the board voted to distribute $ 250 million to family shareholders, an action opposed by Arthur T. In March 2014, two board members elected by Arthur T., William Shea and Terence Carleton, skipped a meeting in which it was anticipated that there could be a vote to remove Arthur T. as CEO. Arthur S.'s side of the family sued Shea and Carleton, alleging they had intentionally missed the meeting so there wouldn't be enough members to have a vote. A judge sided with Arthur S. and ordered Shea and Carleton to attend the next meeting.
421:, respectively, who reminded the company's executives that their actions had "serious implications" on many small businesses that relied on their relationship with Market Basket for their means of support as well as Market Basket's obligations to compensate fired employees. Thornton and Gooch responded by stating that they "sincerely hoped" they would not have to fire any employees and desired to get the "stores back up and running for our customers and, importantly, for the many local vendors that rely on Market Basket to make their own businesses successful."
343:, flagship store on June 24, 2014. The protesters criticized the Market Basket board for putting money before people by choosing to pay its shareholders more instead of reinvesting in the business. Many employees also feared that the new leadership would cut benefits, wages, profit-sharing, and bonuses and raise prices. Employees also speculated that the removal of Arthur T. Demoulas was the first step in the process of selling the company. Most employees did not go on strike, but rather participated in the protests on their own time, including during breaks.
384:, that reportedly belonged to a Market Basket shareholder. On August 15, hundreds of employees continued to protest, including 200 outside of Market Basket headquarters, despite management threatening to fire a number of employees if they did not return to work. That same day, a replacement driver for Market Basket got out of his truck with a hammer and approached protesters at the company's headquarters in Tewksbury in a threatening manner. He was arrested by Tewksbury police and charged with assault by means of a dangerous weapon and disorderly conduct.
372:
499:
332:
228:. George Demoulas died in 1971. In 1990, the widow and children of George Demoulas (including his son, Arthur S. Demoulas) sued Telemachus Demoulas, alleging that they had been defrauded out of their shares in the company. Arthur S. Demoulas later filed a second suit, this time alleging that Telemachus Demoulas had diverted assets from the jointly-owned family company to ones controlled by him and his children. Both cases were decided in favor of the plaintiffs. Judge
236:
484:
261:. Demoulas was known for his ability to remember his employees' names, birthdays, and milestones, attending many of their weddings and funerals, checking in on ill employees, and asking about the spouses and children of his workers. He was seen as a father figure by a number of his employees and compared to
428:
for prospective employees. Thornton and Gooch later stated that they had heard that many people were "concerned for their safety" if they attended the fair and they would allow people to apply for jobs through email because those interested "should be given an opportunity without fear of intimidation
354:
delivered an ultimatum to Gooch and
Thornton. They demanded that the Board of Directors reinstate Arthur T. Demoulas as CEO by 4:30 p.m. the following day. Gooch and Thornton responded the following day by announcing in a letter to employees that the board would meet by phone on July 21, 2014 to
518:
reported that Arthur T. Demoulas was the only remaining bidder for the 50.5% stake of the company held by the family of Arthur S. Demoulas. All previous offers by outside parties to buy the company had been withdrawn, and the board was reportedly "furiously negotiating" with Arthur T. to resolve the
293:
Greenberg found the fees paid to Retail
Development and Management Inc. were not disproportionate to the amount of work done and lawyers for Arthur T. noted that Cushman & Wakefield later appraised the Bourne property as being valued at $ 25.5 million. Arthur T. also defended his decision to buy
279:
In 2010, Arthur S. Demoulas's lawyers drafted legal memos accusing Arthur T. Demoulas of misappropriating millions of dollars by arranging company deals with companies in which Arthur T. and his family were personally invested. The first allegation was against Retail
Development and Management Inc.,
405:
On July 30, 2014, CEOs Gooch and
Thornton released a statement that promised that "any associate that wants to return will be welcomed and not penalized." It also stated that the store would "begin advertising for employment opportunities" on August 8 to replace employees who chose not to work. The
358:
On July 20, 2014, eight employees were fired for their roles in organizing the protests. The next day, an estimated 5,000 people rallied outside the Market Basket store in
Tewksbury. Leaders of the movement said that the protests must now head to the stores. Employees, as well as state politicians,
544:
met with both sides of the feud in an attempt to broker a deal. On August 22, 2014, Arthur T. made a $ 1.5 billion offer for the 50.5% of shares owned by the opposing side of the family; several subsequent days of negotiations initially failed to reach an accord. The company was estimated to be in
391:
in the air as loud music played from large speakers set up around the parking lot. Also in
Tewksbury, a stage adorned with red, white and blue bunting was set up where protesters delivered speeches. At the company's headquarters, protesters put up tents and roasted a lamb in a fire pit. They also
529:
announced that he had spoken with Arthur T. Demoulas and that it seemed that both sides were close to reaching an agreement that would allow
Demoulas to purchase a controlling share of the company. He urged Market Basket employees to "stabilize the company" by returning to work while a deal was
363:
of Market Basket stores. By mid week, Market Basket's sales had fallen about 70%. That night, Arthur T. Demoulas issued his first statement since his firing, calling for the reinstatement of the fired employees. The protests included both management and rank-and-file employees, all of whom are
346:
Shortly after
Demoulas's dismissal, the Board of Directors signaled that it was willing to replace the management at Indian Ridge Country Club, a golf club owned by the company. This led to a protest by employees of Indian Ridge Country Club and Market Basket. On June 26, 2014, a member of the
436:
On August 12, 2014, the company sent a "final" warning to 200 to 700 employees. The letter, signed by Gooch and
Thornton, informed employees that if they did not return to work by August 15, 2014, the company would consider their jobs abandoned and terminate their employment. According to the
347:
company's board of directors who was loyal to Arthur S. Demoulas, accompanied by a police detail, went to the club to fire its management, who were loyal to Arthur T. Demoulas. Later that day, Gooch and Thornton released a statement announcing that they intended to keep the club's management.
379:
Supporters of Arthur T. Demoulas kept the rallies going through August. On August 5, 2014, the workers held their fourth-largest demonstration, as thousands protested at the Market Basket store in Tewksbury. Beginning on August 7, 2014, a handful of protesters gathered outside of a home in
248:
In 2008, Telemachus's son Arthur T. Demoulas was named President and CEO of DeMoulas Super Markets, Inc. During his tenure as CEO, sales grew from $ 3 billion a year to over $ 4 billion, and the number of employees increased from 14,000 to 25,000. During the same time, competitors
280:
a real estate firm owned by Arthur T.’s brothers-in-law, Kettenbach and Pasquale. The deal with Market Basket paid Retail Development and Management Inc. 7.5% of the total development costs compared to the traditional industry percentage at the time of 2-3%.
534:, the law firm that represented Market Basket's independent board members. Patrick stated that he had not known that his wife's firm had worked for the Board of Directors and that once he became aware he filed a disclosure with the state ethics commission.
287:, for $ 20.9 million. The Bourne property was owned by a company in which Arthur T. was a main investor. After Market Basket purchased this site, Arthur S. consulted Robert Griffin of Cushman & Wakefield, which valued the property at $ 9 million.
192:. Demoulas's dismissal resulted in protests from the company's employees and customers. The protests ended on August 27, 2014, when the company's shareholders, including Arthur S. Demoulas, agreed to sell their shares to Arthur T. Demoulas.
444:
On August 16, 2014, DeMoulas Super Markets placed security guards at both of the entrances of the company's headquarters. The guards recorded the protesters with camcorders. The company also banned the media from the property.
367:
On July 30, 2014, it was reported that managers and assistant managers from 68 of Market Basket's 71 stores prepared to present Gooch and Thornton with a petition stating that they would resign if Arthur T. was not reinstated.
314:
On June 23, 2014, three top-level executives - CEO Arthur T. Demoulas, Vice President Joseph Rockwell, and Director of Operations William Marsden - were fired by the board. The Chief Executive position was filled by former
429:
or harassment." Steve Paulenka, one of the leaders of the protests, disputed the CEOs' claims. He stated that about 200 employees had demonstrated outside of the job fair and that the protests had been peaceful.
396:
also appeared on signs and some employees held up stuffed giraffes, as the employees were "sticking their necks out" for Demoulas. Protesters received many donations, including food, signs, and portable toilets.
769:
432:
On August 7, 2014, Market Basket stopped scheduling future hours for part-time employees. Beginning August 23, 2014, however, some part-time workers were called back to begin working again if available.
387:
The atmosphere of the Market Basket protests was described as being like an "outdoor rock festival," "tailgating party," and "campaign rally." At a rally at the Tewksbury store, protesters threw
896:
392:
brought an American flag to hang from a flag pole on the property after the company went days without putting up a flag. Protesters carried signs with blown-up pictures of Arthur T. Demoulas.
271:
for his willingness to put people over profit. However, Demoulas's opponents criticized him for being "openly defiant" of the board of directors and having a "dictatorial" management style.
1010:
1378:
475:
In the midst of the protests, Arthur T. offered to buy the entire company, an offer that the board said it would consider. The board was reportedly also reviewing additional offers.
642:
1550:
1118:
1425:
553:
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 for $ 1.5 billion. According to
969:
841:
1200:
1028:
792:
777:
216:, for $ 15,000 and converted it into a modern supermarket. The brothers eventually expanded their business into a chain of supermarkets, with locations through
294:
the Bourne property, explaining by purchasing that specific property, it allowed Market Basket to avoid fighting in a bidding war against their competitors.
1291:
1643:
925:
232:
awarded George's family about $ 206 million and 50.5% of the company. She also ordered that Telemachus Demoulas be removed as president of the company.
1575:
1463:
947:
711:
1617:
1512:
595:
545:"dire" financial straits due to the months of protests. According to one estimate, the company lost $ 10 million a day during the protests.
530:
finalized. Patrick came under fire for suggesting employees return to work, as his wife is a co-managing partner and labor attorney for
1531:
290:
In response to these allegations, the Board of Directors hired Mel L. Greenberg, a retired judge, to investigate Arthur S.' claims.
1683:
1678:
1351:
741:
268:
1136:
1099:
1688:
1598:
1073:
457:
business reporter Kim Gittleson wrote, "the dispute seemed to encapsulate everything that is wrong with corporate America."
1673:
815:
800:
339:
In response to Demoulas's firing, six high-level managers resigned, and 300 employees held a rally outside Market Basket's
1246:
614:
1703:
1310:
573:, a source reported there was no private equity involved. The sale was officially completed on December 12, 2014.
201:
1698:
1693:
411:
407:
144:
418:
225:
1331:
61:
after Telemachus “Mike” Demoulas and his late brother, George’s widow had disagreements over finances.
1218:
867:
538:
523:
257:
closed many of their stores due to financial troubles. Market Basket also faced new competition from
88:
189:
181:
519:
situation. The board denied this report, claiming that several offers were still being considered.
351:
263:
1486:
1154:
1053:
375:
Sign supporting the Market Basket protests at the Tupelo Music Hall in Londonderry, New Hampshire
205:
1179:
340:
303:
185:
1404:
284:
213:
560:
567:
firm that put up over $ 500 million towards the purchase price. However, according to the
8:
1444:
897:"Leaders Resign While Hundreds of Market Basket Employees Rally in Support of Fired CEO"
733:
1445:"The Last Stand for the Middle Class is Taking Place in a Parking Lot in Massachusetts"
991:
555:
463:
364:
non-union. On July 22, 2014, protests were held at all 71 of Market Basket's stores.
371:
1270:
1201:"Protesters gather around York home reportedly owned by Market Basket shareholder"
498:
302:
In mid 2013, shareholder Rafaela Evans, the widow of Arthur S. Demoulas's brother
531:
461:
described the dispute as "the last stand for the middle class" in an article for
331:
180:
On June 23, 2014, the Board of Directors of DeMoulas Super Markets, Inc. (led by
58:
623:
564:
414:
250:
1667:
670:
541:
526:
505:
490:
458:
221:
217:
43:
1054:"Market Basket Board Will 'Seriously Consider' Ex-CEO Proposal to Buy Chain"
569:
1551:"No accord in Market Basket discussions: Sides at odds over terms of sale"
1379:"Market Basket Managers Inquiring About Part-Timers' Availability to Work"
441:, none of the employees that received the ultimatum had returned to work.
1100:"A tale of two Arthurs: Market Basket family feud sparks workers' revolt"
381:
316:
229:
209:
39:
388:
320:
1119:"Market Basket Employees 'Stick Necks Out' at Huge Rally in Tewksbury"
323:
executive Felicia Thornton, who were appointed to share the position.
1487:"Market Basket board insists it is weighing several potential buyers"
1292:"Market Basket Protests Persist on Day of Deadline to Return to Work"
283:
Secondly, Arthur T. recommended Market Basket purchase a property in
254:
235:
93:
712:"How one woman set off the latest chapter in the Market Basket tale"
1271:"Vote For Arthur T.? Market Basket Rallies Echo Political Campaign"
425:
98:
1106:. West Bridgewater, Massachusetts. Associated Press. 25 July 2014.
992:"Shelves Empty as Market Basket Employees Bring Dispute to Stores"
1532:"Patrick offers help, says Market Basket situation 'out of hand'"
1409:
1336:
1332:"State AGs Remind Market Basket of Laws Protecting Fired Workers"
1315:
1275:
1223:
1184:
1058:
842:"Market Basket board votes to distribute $ 250 million to owners"
453:
The Market Basket protests struck a chord nationally because, as
393:
360:
258:
1011:"Market Basket Employees Plan to Walk Out Despite Firing Threat"
1599:"Exclusive: Blackstone Group is Market Basket's mystery backer"
1352:"Market Basket slashes part-timers' hours as protests continue"
350:
On July 16, 2014, employees at Market Basket's headquarters in
297:
1405:"Market Basket CEOs Give Protesting Workers 'Final' Warning"
1219:"Despite Ultimatum, Market Basket Workers Continue Protests"
970:"Market Basket Employees Demand Reinstatement of Ousted CEO"
734:"Meet America's Most Beloved CEO—Too Bad He Just Got Fired"
1576:"Deal reached to sell Market Basket to Arthur T. Demoulas"
596:"Market Basket Revolt Ends as Arthur T. Demoulas Wins Bid"
483:
1074:"Market Basket shelves look bare during corporate strike"
454:
859:
688:
Frisch, Michael S. (Fall 2007). "Zealousness Run Amok".
770:"Updated: What the Heck Is Happening at Market Basket?"
643:"Arthur T. Demoulas's personal touch can cut both ways"
1644:"Arthur T. Demoulas closes deal to buy Market Basket"
1513:"Governor's transparency eyed in Market Basket feud"
1311:"Market Basket CEOs Ask Employees to Return to Work"
1137:"Worker arrested as Market Basket protests continue"
671:"Market Basket: Workers risk it all for their boss"
627:
on 21 September 2014 – via Highbeam Research.
243:
1247:"Market Basket workers defiant as deadline passes"
1180:"Market Basket Workers Rally, Keeping Pressure Up"
1021:
622:
1029:"Thousands Rally Outside Tewksbury Market Basket"
1665:
1484:
985:
983:
274:
309:
188:chain of supermarkets, fired President and CEO
1290:Salahi, Lara; Vaccaro, Adam (15 August 2014).
1155:"Market Basket managers turn up heat on chain"
727:
725:
594:Moroney, Tom; Staiti, Chris (28 August 2014).
1642:Ross, Casey; Healy, Beth (12 December 2014).
1615:
1549:Ross, Casey; Newsham, Jack (24 August 2014).
1455:
1289:
980:
767:
593:
548:
1462:Ross, Casey; Newsham, Jack (July 24, 2014).
1376:
1048:
1046:
963:
961:
1548:
1461:
1174:
1172:
1170:
1168:
941:
939:
839:
813:
722:
589:
587:
585:
298:Attempted removal of Arthur T. by Arthur S.
681:
615:"Wiretap claims are key to DeMoulas fight"
208:purchased Demoulas Market, their parents'
1641:
1609:
1240:
1238:
1236:
1234:
1043:
958:
926:"Market Basket Turmoil Hits Country Club"
890:
888:
668:
1426:"Market Basket workers stay off the job"
1402:
1268:
1165:
936:
790:
640:
582:
400:
370:
330:
234:
1596:
1510:
1442:
1423:
1330:Conway, Abby Elizabeth (31 July 2014).
1309:Conway, Abby Elizabeth (30 July 2014).
1264:
1262:
1260:
1116:
1008:
989:
967:
948:"Timeline: The Summer of Market Basket"
945:
923:
919:
917:
894:
705:
703:
701:
699:
636:
634:
1666:
1529:
1329:
1308:
1244:
1231:
885:
763:
761:
759:
731:
709:
690:The Georgetown Journal of Legal Ethics
687:
612:
606:
424:On August 4, 2014, the company held a
1478:
1198:
865:
793:"Demoulas CEO Facing Board Challenge"
664:
662:
660:
658:
656:
64:Removal of Arthur T. Demoulas as CEO.
1257:
914:
744:from the original on August 13, 2020
696:
631:
470:
76:Reinstate Arthur T. Demoulas as CEO.
1464:"Market Basket has several suitors"
866:Scott, Christopher (24 June 2014).
756:
641:Borchers, Callum (22 August 2014).
13:
1616:Vaccaro, Adam (12 December 2014).
653:
448:
14:
1715:
1511:Cassidy, Chris (16 August 2014).
1485:Schreiber, Jason (29 July 2014).
1403:Nickisch, Curt (12 August 2014).
816:"Market Basket CEO gets reprieve"
613:Nealon, Patricia (16 July 1997).
319:executive James Gooch and former
1424:Newsham, Jack (15 August 2014).
1269:Nickisch, Curt (6 August 2014).
946:Vaccaro, Adam (29 August 2014).
768:Vaccaro, Adam (25 August 2014).
710:Welker, Grant (27 August 2014).
669:Gittleson, Kim (1 August 2014).
537:On August 17, 2014, Patrick and
497:
482:
406:letter prompted a response from
244:Presidency of Arthur T. Demoulas
1684:Labor disputes in New Hampshire
1679:Labor disputes in Massachusetts
1635:
1597:Primack, Dan (28 August 2014).
1590:
1568:
1542:
1530:Murphy, Matt (11 August 2014).
1523:
1504:
1443:Faraone, Chris (29 July 2014).
1436:
1417:
1396:
1377:Saffir, Doug (25 August 2014).
1370:
1344:
1323:
1302:
1283:
1245:Clauss, Kyle (16 August 2014).
1211:
1199:Morse, Susan (13 August 2014).
1192:
1147:
1129:
1110:
1092:
1066:
1002:
833:
807:
412:New Hampshire Attorneys General
1618:"Market Basket Deal Completed"
1117:Vaccaro, Adam (21 July 2014).
1009:Vaccaro, Adam (17 July 2014).
990:Lepiarz, Jack (23 July 2014).
968:Vaccaro, Adam (17 July 2014).
924:Vaccaro, Adam (27 June 2014).
895:Vaccaro, Adam (24 June 2014).
791:Springer, Jon (12 July 2013).
784:
1:
1689:Protests in the United States
1031:. Boston Globe. July 21, 2014
732:Tuttle, Brad (23 July 2014).
576:
275:Allegations against Arthur T.
184:), the company that runs the
840:Ross, Casey (23 July 2014).
814:Ross, Casey (18 July 2014).
310:Firing of Arthur T. Demoulas
7:
1674:Market Basket (New England)
335:Chelsea Market Basket store
326:
10:
1720:
1704:Labor relations by company
868:"Market Basket CEO canned"
549:Sale to Arthur T. Demoulas
226:northeastern United States
202:Telemachus "Mike" Demoulas
195:
559:, Demoulas was backed by
162:
157:
119:
114:
106:
82:
70:
51:
34:
30:June 24 - August 27, 2014
26:
21:
504:New Hampshire Governor
489:Massachusetts Governor
130:Market Basket employees
539:New Hampshire Governor
524:Massachusetts Governor
514:On July 28, 2014, the
376:
341:Chelsea, Massachusetts
336:
240:
22:Market Basket protests
1699:2014 in New Hampshire
1694:2014 in Massachusetts
401:Response from company
374:
334:
285:Bourne, Massachusetts
264:It's a Wonderful Life
238:
214:Lowell, Massachusetts
561:The Blackstone Group
522:On August 13, 2014,
359:began to call for a
171:Arthur S. Demoulas
166:Arthur T. Demoulas
1536:Nashoba Publishing
780:on 26 August 2014.
377:
337:
241:
239:Market Basket logo
206:George A. Demoulas
200:In 1954, brothers
190:Arthur T. Demoulas
182:Arthur S. Demoulas
1227:. 15 August 2014.
471:Sale negotiations
178:
177:
153:
152:
1711:
1659:
1658:
1656:
1654:
1639:
1633:
1632:
1630:
1628:
1622:The Boston Globe
1613:
1607:
1606:
1594:
1588:
1587:
1585:
1583:
1578:. 27 August 2014
1572:
1566:
1565:
1563:
1561:
1546:
1540:
1539:
1527:
1521:
1520:
1508:
1502:
1501:
1499:
1497:
1482:
1476:
1475:
1473:
1471:
1459:
1453:
1452:
1440:
1434:
1433:
1430:The Boston Globe
1421:
1415:
1414:
1400:
1394:
1393:
1391:
1389:
1374:
1368:
1367:
1365:
1363:
1348:
1342:
1341:
1327:
1321:
1320:
1306:
1300:
1299:
1296:The Boston Globe
1287:
1281:
1280:
1266:
1255:
1254:
1242:
1229:
1228:
1215:
1209:
1208:
1196:
1190:
1189:
1188:. 5 August 2014.
1176:
1163:
1162:
1151:
1145:
1144:
1133:
1127:
1126:
1123:The Boston Globe
1114:
1108:
1107:
1096:
1090:
1089:
1087:
1085:
1070:
1064:
1063:
1050:
1041:
1040:
1038:
1036:
1025:
1019:
1018:
1015:The Boston Globe
1006:
1000:
999:
987:
978:
977:
974:The Boston Globe
965:
956:
955:
952:The Boston Globe
943:
934:
933:
930:The Boston Globe
921:
912:
911:
909:
907:
892:
883:
882:
880:
878:
863:
857:
856:
854:
852:
837:
831:
830:
828:
826:
811:
805:
804:
803:on 28 July 2014.
799:. Archived from
797:Supermarket News
788:
782:
781:
776:. Archived from
765:
754:
753:
751:
749:
729:
720:
719:
707:
694:
693:
685:
679:
678:
666:
651:
650:
647:The Boston Globe
638:
629:
628:
626:
621:. Archived from
619:The Boston Globe
610:
604:
603:
591:
532:Ropes & Gray
501:
486:
212:-style store in
121:
120:
19:
18:
16:2014 controversy
1719:
1718:
1714:
1713:
1712:
1710:
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1708:
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1559:
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1528:
1524:
1509:
1505:
1495:
1493:
1483:
1479:
1469:
1467:
1460:
1456:
1441:
1437:
1422:
1418:
1401:
1397:
1387:
1385:
1375:
1371:
1361:
1359:
1358:. 7 August 2014
1350:
1349:
1345:
1328:
1324:
1307:
1303:
1288:
1284:
1267:
1258:
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317:Radio Shack
230:Maria Lopez
210:mom and pop
127:Protesters
40:New England
1668:Categories
1251:Lowell Sun
872:Lowell Sun
716:Lowell Sun
577:References
321:Albertsons
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1560:25 August
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110:Concluded
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327:Protests
99:Lobbying
35:Location
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255:Shaw's
107:Status
738:MONEY
71:Goals
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