Demoulas family members still fighting in court as Market Basket continues to grow
LOWELL, Mass. – The Demoulas family is fighting again in Massachusetts court, even as their Market Basket business continues to boom.
A Suffolk County (Mass.) Superior Court judge has ordered a company meeting for July 18, according to reports from The Boston Globe and Boston Business Journal. It’s the latest stage of feuds between families of founders George and Telemachus Demoulas over the supermarket company.
The reports say Market Basket CEO Arthur T. Demoulas could be fired because the board of directors is controlled by a faction of the Demoulas family that opposes the way he has been running the business.
According to the reports, Arthur T. Demoulas is accused by some of spending money recklessly, including transactions with companies owned by his wife and brothers-in-law.
A petition addressed to Mr. Levins, Mr. El-Hage and Mr. Cown, posted on the website Care2 at www.thepetitionsite.com, is seeking 10,000 signatures to keep Arthur T. Demoulas at the helm.
“We implore you to please consider all that Market Basket means to the people who shop there, work there and consider it more than just a business. For so many in the region it has been the place we can trust to help us save money as we feed our families,” the petition reads. “Please consider the ramifications to so many people if you vote to oust the current CEO, Arthur T. Demoulas. We will be the victims who lose the wonderful, independent business at which generations of our families have shopped and worked.”
As of 9 p.m. Thursday, a little more than 4,000 people had signed the petition, which can be found at http://goo.gl/2t7l0.
Fans on Twitter also expressed support for the CEO using #SaveArthurT and #save
marketbasket.
The family fight has been in the courts for years. Back in 1997, the courts ruled that heirs of George Demoulas had been cheated out of millions by Telemachus Demoulas, George’s brother, and his heirs.
After that was settled, following two appeals, in 2011, Arthur S. Demoulas (son of George Demoulas), Fotene J. Demoulas and Diana D. Merriam, three
company shareholders, sued Arthur T. Demoulas (son of Telemachus Demoulas), William F. Marsden and D. Harold Sullivan, claiming that a profit-sharing plan caused the loss of $46 million.
The Boston Globe reported that Arthur S. Demoulas’ side recently gained control of the board of directors. It went to Suffolk County Superior Court after board members who support Arthur T. Demoulas failed to appear for board meetings to consider his removal, according to the report.
Without a quorum, no votes could be held. A judge ordered a meeting to be held next Thursday.
All this fighting has done nothing to slow down Market Basket, generally considered the most successful New England grocery chain in recent years. It has opened two huge new Greater Nashua stories – in Bedford and Somerset Plaza in Nashua – closing two smaller, older stores in the process.
Market Basket has 71 stores in Massachusetts and New Hampshire and plans to soon open its first store in Maine.


