BOSTON Aug 28 A family feud and employee revolt
that tipped New England supermarket chain Market Basket into
chaos ended late Wednesday with a deal to sell the company to
its ousted CEO, Arthur T. Demoulas, according to a statement
announcing the deal.
"He and his management team will return to Market Basket
during the interim period while the transaction to purchase the
company is completed," the statement said, without detailing the
value of the deal. The statement was provided by a spokesman for
Arthur T. Demoulas.
Demoulas had been fired by the board of directors in June
after a power struggle with his cousin Arthur S. Demoulas,
triggering a rare revolt by employees who hailed his
As a solution, Arthur T. proposed in July to buy the 55
percent of the company he did not already control. The Boston
Globe placed the value of the deal at $1.5 billion.
Market Basket, based in Tewksbury, Massachusetts, is one of
New England's leading privately-held supermarkets with some
$3.55 billion in revenue from its more than 70 stores around the
region. It competes with New England chains like Hannaford
Brothers, Shaw's, and Stop & Shop.
The Demoulas family founded Market Basket in 1962.
But the Demoulas family feud put the company's operations in
disarray. Work stoppages and a boycott call by angry employees -
who say Arthur T. provided good wages and benefits - led to
empty shelves in some stores.
The family feud began decades ago over allegations by Arthur
S.' side of the family that Arthur T.'s father had stolen
ownership shares by setting up shell companies. A judge sided
with Arthur S.'s family in 1994, giving it a 51 percent share.
Despite family tensions, Arthur T. became head of the
company in 2008. The board shifted in Arthur S.'s favor in 2013,
however, after two members were replaced.
The statement said all previous employees fired during the
transition "are welcome back to work with the former management
team to restore the company back to normal operations."