The mediation session between suspended Market Basket CEO Arthur T. Demoulas and the grocery chain’s board of directors concluded on Wednesday without any resolution announced by either party. This highly anticipated meeting took place in Delaware and aimed to address ongoing tensions within the company following a tumultuous period marked by public disputes and extensive media coverage.
After months of escalating conflict, the meeting was seen as a critical moment in the ongoing corporate drama. Both sides kept details of the mediation confidential, including its exact timing and structure. Harvey Wolkoff, an attorney from Quinn Emanuel Boston, which is conducting the board’s investigation into Arthur T., indicated prior to the mediation that it was scheduled for one or two days. It remains unclear whether additional sessions were needed or if they took place on Thursday.
The conflict at Market Basket traces back to a bitter family feud involving Arthur T. Demoulas and his three sisters: Frances Demoulas Kettenbach, Glorianne Demoulas Farnham, and Caren Demoulas Pasquale. The siblings collectively own the company after purchasing it for $1.6 billion from their cousin, Arthur S. Demoulas, following boycotts and protests that erupted after Arthur T. was ousted as CEO in 2014.
In a shift from previous events, Arthur T. and several executives perceived as his allies were placed on paid administrative leave pending an investigation that began on May 28, 2023. This move was distinct from the outright firing experienced in previous conflicts. In the weeks following, additional long-serving employees were also put on leave, some alleging that they faced repercussions for questioning the reasons behind Arthur T.‘s administrative leave. The board has denied these claims.
In July 2023, two executives, Joe Schmidt and Tom Gordon, who were placed on leave alongside Arthur T., were officially terminated by the board. A judge subsequently ordered the pair to stay away from any Market Basket properties after they reportedly visited around two dozen locations shortly after their dismissal, in violation of board directives.
The recent developments also saw the removal of Bill Shea, the last board member aligned with Arthur T.. His departure, coupled with the earlier removal of Terry Carleton, has left the board with only three members: Steven Collins, Michael Keyes, and Chair Jay Hachigian.
As the situation stands, the resolution of the corporate conflict at Market Basket remains uncertain, with both sides likely to continue their respective strategies in the wake of the mediation session. The lack of communication following the talks suggests that the internal struggle is far from over, leaving employees and customers alike awaiting further developments.