Demoulas Market Basket made retail and labor relations history in 2014 after an unprecedented show of employee and customer support for ousted CEO Arthur T. Demoulas virtually shut down the popular grocery gain for several weeks during the summer.

In protests across Northern New England, employees demanded his reinstatement through mass gatherings and walkouts. Meanwhile the customers, in solidarity with employees, shopped elsewhere and taped competitor
receipts to Market Basket windows.

What made the dispute unique was that employees were not seeking higher wages or benefits but sought only to bring back Arthur T. as CEO.

After years of an internal power struggle, Arthur T. was pushed out of the family-owned company by a board of directors led by his cousin Arthur S. Demoulas in June. The move prompted six weeks of employee protests and customer boycotts that only ended when the deposed CEO successfully bid to purchase a controlling interest of the company in late August. The purchase was finalized Dec. 12.

Market Basket employees praised Arthur T.’s leadership and said he made the company feel like a family. Support also came from fears that new leadership would eventually reduce pay and benefits and fundamentally change the company’s philosophy of offering products as the lowest possible cost.

Employees demonstrated at Market Basket storefronts and on August 5 thousands of employees and customers rallied in Tewksbury, calling for Arthur T.’s
reinstatement. During the protests, management led by co-CEOs Felicia Thornton and Jim Gooch told employees several times to return to work or face termination. Employees continued to demonstrate anyway.

The company attempted a job fair to hire replacement workers and threatened to fire absent employees on more than one occasion, but workers held strong and customers stayed away.

Arthur T. bid $1.5 billion on Aug. 21 to purchase 50.5 percent of the company from Arthur S. and other relatives. Several days later he was reinstated and Market Basket began its recovery to normalcy.

So strong was the public solidarity with protesting workers that more than 160 mayors and legislators in Massachusetts and New Hampshire joined thousands of customers in signing petitions to boycott the store.

Massachusetts Gov. Deval Patrick and New Hampshire Gov. Maggie Hassan joined the fray by attempting to mediate a solution.

When a deal was reached they released a joint statement, “We are delighted that the parties have reached an agreement on terms of sale and resolution of operating authority, so that employees can return to work and customers will once again be able to rely on these stores to meet their needs.”

The company lost millions in sales during the protests and boycott because delivery drivers and distribution center workers refused to restock shelves.

Arthur T. regained control of the company employees and customers have returned and operations are back to normal. The chain continues to expand opening new stores in Revere, Waltham and Littleton, MA. this fall.

The grocery chain, now with 74 locations and about 25,000 employees, operates across New Hampshire, Massachusetts and Maine with headquarters in Tewksbury, Mass.

The dust has settled, and Arthur T. has vowed to keep Market Basket’s signature low prices as well as high pay and perks for employees. He also announced in mid December the annual holiday bonus would still be paid regardless of the buyout debt.

Market Basket has been a staple for New England shoppers since the late Arthur Demoulas, grandfather of Arthur T. and Arthur S., opened the first store in Lowell in 1917.

Tina Forbes can be reached at 594-6402 or tforbes@nashuatelegraph.com. Also, follow Forbes on Twitter (@Telegraph_TinaF).