Ousted CEO reaches deal to buy Market Basket
The epic feud between Market Basket shareholders that ignited a company-wide boycott came to an end Wednesday night when the rival relatives reached a deal to sell a majority share of the company to ousted CEO Arthur T. Demoulas for $1.5 billion.
The Boston Globe reported that the Massachusetts-based chain — with 71 stores in New England, including one in Maine — could take a few weeks to return to normal operations because of the need to re-establish ties with vendors who stopped supplying the embattled company during the employee and customer boycotts.
Under the deal approved by Market Basket’s board of directors, Arthur T. and his relatives will buy the 50.5% share of the company owned by his cousin, Arthur S., and his side of the family for $1.5 billion. Arthur T., who was already the company’s minority shareholder, will also return to his role as CEO and have the ability to rehire his old management team.
However, Arthur T. will have to work alongside the company’s current co-CEOs, Felicia Thornton and James Gooch, until the deal closes — which will take several months.
“Effective immediately, Arthur T. Demoulas is returning to Market Basket with day-to-day operational authority of the company,” the company said in a statement. “All associates are welcome back to work with the former management team to restore the company back to normal operations.”
Arthur T. was fired by Market Basket’s board in June because it said he was overspending and failing to follow board directives. The ouster prompted a company-wide boycott, which left many stores, including the one in Biddeford, with empty shelves. The boycott also interrupted the supermarket chain’s plan to open more stores in Maine.
Market Basket, which owns 70 supermarkets in New Hampshire and Massachusetts, opened its first Maine store in Biddeford last August. The grocery chain's entry into Maine had been projected to drive down prices in competing stores as more non-traditional stores vie for the food-purchasing dollars of grocery shoppers, as reported by Mainebiz.
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