DeMoulas Super Markets, Inc, under the trade name Market Basket, is a chain of 71 supermarkets in New Hampshire, Massachusetts and Maine. In 1954, immigrants Athanasios (Arthur) and Efrosini Demoulas sold their one store to two of their six children, Telemachus “Mike” and George. George and Mike expanded the store to 15 locations, followed by George’s death in 1971. Mike passed away in 2003, and his son Arthur T. DeMoulas was appointed the role of CEO, further expanding the business to the 71 stores, 25,000 employees, 2 million customers and $4.6Billion in revenue each year. During Arthur T. DeMoulas’s tenure, he went to great lengths (documented in board meeting transcripts) to keep prices low, while providing employees with bonuses totaling an extra 6-8 weeks pay, $1,000 scholarships for all workers enrolled in college, and an extra 15% of pay invested in a retirement account. Market Basket delivered consistent, unprecedented growth—and stellar profit margins by any measure. George’s children (Diana Merriam, Fotene DeMoulas, Arthur S. DeMoulas and Evan DeMoulas’ widow Rafaela) control 50.5% of Market Basket, and are led by Arthur S. who appointed himself onto the Board of Directors. Arthur S., Diana Merriam and their family have been fighting with Arthur T. and the Board of Directors since 2003 for more shareholder payouts (despite Arthur S. being rated Bostons 8th wealthiest person thanks to his uncle and cousin) and have voted against the bonuses, profit sharing and scholarships. Arthur S. and Diana finally secured the votes they needed (from their family), and took that opportunity to pay themselves and the shareholders $300million before they fired Arthur T. from his position as CEO. Further, it is widely recorded through affidavits that Arthur S.’s plan is to slash employee benefits and raise prices. After Arthur T. and his two top advisers were fired (100 combined years of service), seven additional top-management walked out of their positions (combined 282 years of service). There was an employee revolt and warehouse worker walk-out which resulted in the firing of eight middle managers via courier (combined 293 years of service). Market Basket’s 2million customers had been watching and are now standing with the Market Basket employees who have spent their lives building the company that enriched these shareholders while they sat back and collected airplanes, cars, interior design firms and vineyards. 2 million customers and 25,000 employees are asking Diana Merriam and her family to re-instate Arthur T. DeMoulas as CEO.
Posted on: Tue, 19 Aug 2014 19:21:49 +0000
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