Market Basket War Escalates as Executives Ousted in Surprise Coup

The civil war at Market Basket headquarters in Tewksbury escalated Tuesday after the public learned that two longtime board members had been fired. Tom Gordon and Joe Schmidt, both strong allies of Arthur T. Demoulas, were dismissed from the Market Basket Board of Directors.  How could this affect our Fall River and New Bedford locations?  Arthur T. Demoulas says both of these men were titans in the grocery industry.

Arthur T. Demoulas Responds to Firings

"Stephen Collins called Tom Gordon and Joe Schmidt today and fired them. In addition to being men of strong character, these are two of the brightest and best grocery store operators in the business, and their extraordinary work has been key to building this company and its culture.

This is among the worst decisions that could be made by this board. Stephen Collins of Exeter Capital doesn’t understand this company’s culture. Nor do his fellow board members Jay Hachigian of Gunderson Dettmer and Michael Keyes of Intercontinental Real Estate.

To them, Tom, after 50 years with the company, and Joe after 39 years, are easily cast aside. They are just collateral damage in this pre-planned coup.
To Market Basket, Tom and Joe are part of the heart and soul of the company and key executives in its immense success to date. They are men of integrity and honor and belong on the Market Basket team, and we will use all efforts to reverse this heartless and unwarranted decision." – Arthur T. Demoulas

READ MORE:  Why Market Basket Workers Stand Behind Artie T. Demoulas

Demoulas has been on leave from the New England grocery chain for months following allegations that he attempted to organize a work stoppage within the company.
Market Basket’s business model, beloved by many for its low prices and employee loyalty, previously survived a dramatic work stoppage in 2014. That incident was also sparked by a bitter battle between the Demoulas family cousins.

What Happens Next for Market Basket?

Whether this new round of backstabbing boardroom battles ends up sparking another word stoppage is anyone's guess, but for loyal customers and employees, Arthur T.’s latest statement is another reminder of how deeply emotional and personal the Market Basket war has become.