Market Basket CEO Arthur T. Demoulas has been put on paid administrative leave pending the outcome of an investigation regarding his alleged plans for a work stoppage. Courtesy photo

TEWKSBURY, Mass. — The Executive Committee of the Market Basket Board of Directors recently placed CEO and minority shareholder Arthur T. Demoulas and several other employees on paid administrative leave, effective immediately while an investigation is conducted into the CEO’s conduct.

The investigation will include a review of credible allegations that Demoulas began to plan a disruption of the business and operations of Market Basket with a work stoppage. The Executive Committee believes that Demoulas and others have taken these steps as improper retaliation for the board’s directives requiring the CEO to work with the Board regarding the most basic corporate oversight and to provide the board access to key employees. Demoulas has also resisted an appropriate succession plan for Market Basket, asserting that he has the unilateral right to appoint his children to succeed him without any consideration of the view of the board or the majority owners of Market Basket.

At a time of great economic uncertainty for many households, such work stoppages would significantly harm and broadly disrupt Market Basket’s stores and operations across New England as well as its valued customers, associates and vendors.

“Market Basket stores provide a place that our local communities consistently count on for both

their livelihoods and daily needs–the board has a responsibility to safeguard the company’s

effective operations now and well into the future,” said Steven Collins, director of Market

Basket.

Collins emphasized that Market Basket takes pride in operating with unwavering integrity that

aligns with high standards, treating the company’s associates with respect, and consistently

delivering “More For Your Dollar” value to its customers.

While on leave, Demoulas will continue to be paid his full salary and share in all company

distributions. During this time, the Board will rely on the existing management team to ensure that the operations of the 90 stores will be uninterrupted and maintain the quality, experience and superb service that customers expect and enjoy.

There will be no changes for the company’s associates in their jobs, salaries and benefits, including the company’s profit-sharing plan and the ownership of the business will not change. For shoppers, Market Basket will continue to provide its customers superior products and service at prices they have come to expect.