Market Basket CEO Anticipates Potential Ousting
Next week, Market Basket board members will make a decision that could forever change the future of the 71-store chain that has expanded into into a company with $4 billion in revenue, according to the Lowell Sun.
Plans may be in place to remove CEO Arthur T. Demoulas, son of one of the founders. The family has battled with the company for years; however, this may be the most drastic move to date.
Market Basket has increased sales by one-third, added about 8,000 employees, maintained one of the highest profit margins in the business, and won acclaim from industry analysts since Demoulas was appointed CEO in 2008.
In a meeting with the reporters, Demoulas said the potential ousting has him "concerned for the organization and its people."
"If they remove me, what kind of message is that to the company?" he said.
In court filings, Arthur S. Demoulas, cousin of Arthur T. Demoulas, has reportedly accused the chief executive of reckless spending. A Suffolk Superior Court judge ruled last month that the company's board members must meet after members in support of Arthur T. Demoulas sat out a previous meeting, avoiding a quorum and ensuring that no vote could be held.
In the latest lawsuit, Arthur S. Demoulas and two shareholders -- Fotene Demoulas and Diana Merriam -- allege that Arthur T. Demoulas wrongly made business transactions with companies owned by his wife and brothers-in-law, and that he has been unwilling to provide information to board members.
Stay tuned to AndNowUKnow for updates on the decision.
