DeMoulas Market Basket protest (Boston, Revere: real estate, 2014, leasing) - Massachusetts (MA) - City-Data Forum

in_newengland · 07-19-2014, 06:20 PM

Has anyone been following this mess or know more about it? I know there is Arthur T. who is the nice guy who the workers want to keep. I know there was a big blow up a few months ago because another family member, Arthur S. wanted his share of the money and people were worried that this would be the end of the Market Basket stores that so many of us in parts of MA and southern NH know and love.

But the "good guy", Arthur T., won. Market Basket has been rewarding shoppers with a 4% discount and all was well. I thought Arthur T. must have paid the other Arthur his share of the family money and that he rode off into the sunset, wanting nothing more to do with the family store. Then all of a sudden the other day Arthur T. was fired as CEO? Whaaaat? By the board of directors? What board of directors? Where did they come from? Are they the same board of directors? Did he do something? Did they turn on him? What is really going on? There are protests and sick-outs. The shelves are getting bare with workers refusing to work unless Arthur T. is able to return.

Market Basket Workers Rally For Fired CEO Arthur T. Demoulas « CBS Boston

LLCNYC · 07-19-2014, 06:37 PM

It is bizarre. I know this riff has been going on for yearsssssss...I wish they would all just grow up already & settle it so I can buy inexpensive groceries when I'm in MA.

in_newengland · 07-19-2014, 06:45 PM

Quote:

Originally Posted by LLCNYC

It is bizarre. I know this riff has been going on for yearsssssss...I wish they would all just grow up already & settle it so I can buy inexpensive groceries when I'm in MA.

DH was in Market Basket this afternoon and he said the guys in the red jackets were manning the cash registers and the other employees were saying that this could really be the end of Market Basket.

Or maybe they'll just fire the people and keep this new CEO who is not liked and there will still be Market Basket but it won't really BE Market Basket anymore. Not as we know it.

CaseyB · 07-19-2014, 06:54 PM

Some kind of family feud that goes back years. I know lots of people like them and maybe they are cheaper, but I don't care for their stores. The closest one to me is maybe 10-15 miles. It's not worth my time to travel that far for something I consider mediocre to save 5 or 10 bucks.

massnative71 · 07-19-2014, 07:18 PM

Was there today (Hudson store) and signed the petition. Their newer stores are beautiful with great selection, prices and excellent/plentiful staff. They are lacking on a few things, but what store doesn't?Hopefully they will continue on doing what they do best, otherwise it will be a loss to the area.

johngolf · 07-19-2014, 08:49 PM

I personally know some of the players. The company is private with the stock held by family members. What recently happened is one member of the family switched her allegiance (her stock voting power) from Arthur T to his cousin Arthur S thus shifting the power.

Arthur T's Dad (Mike, Telemachus) was a "hard taskmaster" but he also rewarded hard working, loyal employees. Not uncommon for a teenage bagboy to work hard and 20 years later be a store manager. Mike was also a very hands on type person. Arthur T is like his Dad was. So much so that his nickname is "Ditto". He evens looks like Mike, especially as he ages.

After Mike's brother George (co-owner, handshake type deal) died (1971), all was well until a member of the family (Evan, Arthur S's brother) died in a race car incident in 1993. Evan's widow was considering selling her stock. Mike made her an offer. Arthur S (George's son, Mike's nephew, Arthur T's cousin) felt the share offer value was low and he started asking questions. Basically the value of the stock was based on the original DeMoulas Market Store value, not on both DeMoulas Market Stores and Market Basket Stores. Arthur S felt this was wrong. It went to court. Mike claimed he had built Market Basket Stores after George died and they were his alone. The court disagreed with Mike. The court (Judge Maria Lopez in 1994) ruled as Mike had used DeMoulas Store assets and facilities (warehouse, trucks, etc.) to build Market Basket, they were in reality one entity and she found him guilty of fraud. The legal battle was long, expensive., full of trickery, and it caused a major rift in the family. It got so nasty that Arthur T and Arthur S got into a fist fight in the court room. Mike died in 2003 believing in his heart that he had done the right thing.

The balance of power has shifted more then once. The employees prefer Arthur T as they say he looks out for them. The employees say Arthur S is more a numbers guy and the he!! with the employees. As an example of Mike's generosity to employees. One year when the employee stock option plan lost money, Mike reimbursed the loss with his personal money. Arthur S has said the employee stock option plan is to "generous" and has to be evaluated.

MikePRU · 07-19-2014, 08:49 PM

Saw an interesting article the other day on the Globe's website. Apparently, new Market Basket locations were built for the company in Revere and Attleboro and even though the contractor has completed work MB has refused to open the stores.

johngolf · 07-19-2014, 08:58 PM

Quote:

Originally Posted by MikePRU

Saw an interesting article the other day on the Globe's website. Apparently, new Market Basket locations were built for the company in Revere and Attleboro and even though the contractor has completed work MB has refused to open the stores.

I believe part of this is the real estate development company that develops the stores is owned/controlled by Arthur T's brother-in-laws and Arthur S is playing games not wanting to pay them off.

Mike and Arthur T believe in owning the stores/plaza's they are in versus leasing them.

Many of Market Baskets plaza's also had a drug store (Lee Drugs sold to Walgreen's in 1990) and a liquor store generally owned by members of Mike's family.

johngolf · 07-20-2014, 01:48 PM

Want another good old MA family business fight? Look up Berkowitz, Legal Seafoods. The founder George picked one of his three sons (the eldest, Rodger) to succeed him. Middle son Mark did not like it. Off to court they went.

in_newengland · 07-20-2014, 03:08 PM

johngolf, thanks for explaining the situation with Market Basket. Sounds like the ousted Arthur T. really is the good guy. I don't quite understand the previous ruling against him for fraud. Apparently he didn't pay the rest of them enough money. He based it upon what the business was worth when they left, not what it was worth after he built it up. Who knows what is fair. As was explained, he DID use the warehouses and other resources that they others had helped put in place though. But those relatives were stockholders and must have received money all along the way. It sounds like they resented him being generous to the employees and giving money away that they thought should have gone to them. All of this pain and upset over money.