Two Market Basket executives speak out after suspension. "I've given my life for this place"
Market Basket employees, including two executives put on paid leave by the Board of Directors, are speaking out about the ongoing power struggle and new fight for control of the company.
"I've given my life for this place," said Grocery Director Thomas Gordon, who said he's worked for Market Basket for almost 50 years. On Friday, he and Director of Operations Joe Schmidt spoke about the recent decision by the Board of Directors to suspend President and CEO Arthur T. Demoulas and place him on paid leave, along with two of his children who work for the company. Both Gordon and Schmidt were also placed on administrative leave this week.
"I think the next step will be that they'll probably fire me," said Schmidt, who said he's been with Market Basket for 39 years.
Arthur T. Demoulas suspended
The board said Demoulas is being investigated by an independent law firm "for planning a work stoppage in retaliation for requests from the board for basic collaboration and oversight."
"That's just absurd, nobody would do that," said Schmidt, when asked about the claims. "Mr. Demoulas had no indication that he was going to be fired."
Demoulas said the investigation is "a farcical cover for a hostile takeover." He said he was "ousted from his position as President and CEO of Market Basket" by his three sisters and their three appointed board members.
"There is no justification to take him out of his position as president and CEO," said Schmidt.
On Friday, Market Basket Board Chairman Jay Hachigian said the company has no plans to change pricing and the business is not for sale.
"Arthur was put on paid leave because that was done because of a disagreement between the board and Arthur as to the board's oversight responsibilities and Arthur's inability to allow the board conduct the oversight that it's legally required to do," said Hachigian in a video statement.
Will shoppers and workers walk out again?
Back in 2014, when Demoulas was in a legal battle with his cousin for control of the company, many Market Basket employees walked out in a show of support for him. Right now, it's unclear how customers and employees will react this time around.
"I can't answer that question. I have to support myself, I'm a single person. I might stay but I don't know," said one Market Basket employee, who wished to remain anonymous.
"If there's any activity, it would be from the customers," said Gordon. "It's their decision to make, not ours."
On Friday, a spokesperson for the board said there are currently zero negotiations between Demoulas and the board. The company has about 30,000 employees.
