Methuen mayor calls on Market Basket to bring back Arthur T. Demoulas - "Do the right thing"
The mayor of Methuen, Massachusetts is calling on the board of directors of Market Basket to bring back suspended CEO Arthur T. Demoulas, calling the supermarket a "community lifeline" in the city.
In his letter, Mayor David Beauregard Jr. said his city is home to two Market Baskets that thousands of local families rely on each week for groceries. He said the "boardroom drama" is putting everything at risk.
"Market Basket is too important to Methuen - and to New England - to be treated like some corporate chessboard," said Beauregard in his letter. "My city's residents rely on those stores to feed their families. Many rely on those jobs to pay their bills. And what they see right now is a company drifting dangerously off course."
Beauregard is calling on Market Basket to resolve its internal dispute and bring back Demoulas "before the damage becomes irreversible."
"Prices are high. Food insecurity is real. And in Methuen, Market Basket is where people go to make ends meet," said Beauregard in his letter.
What's happening at Market Basket?
The mayor's letter comes after Market Basket's board of directors has fired two suspended executives who are loyal to Demoulas. The board said Joe Schmidt and Tom Gordon were "encouraging a widespread work disruption" to show support for Demoulas, which both deny. Demoulas ripped the board for firing the veteran executives, saying they were "easily cast aside."
"They're going after us, quite simply, because Mr. Gordon and myself are very loyal to Mr. Demoulas and the management team, we stand by the culture, which they represent. And this isn't just about Tom, myself and the Demoulas family. This is about the culture of the company, the associates of the company, and the customers and all of the suppliers that support the company on a day to day basis," Schmidt told reporters at a news conference on Wednesday.
Schmidt claimed he and Gordon were forced out by Demoulis' three sisters, who also sit on the board and want to install someone loyal to them as the CEO.
What's next for Market Basket?
"What happens next is not necessarily in the hands of the board, I think it's most in the hands of the public," said Grant Welker of Boston Business Journal in a conversation with WBZ-TV. "In this case, it's kind of simmering below the surface. But whether people want to shop elsewhere or walk off the job, make those sacrifices as they did in 2014, there isn't that sign yet that we're there but people feel strongly enough and if they do feel like something is more imminent, we may start to see that or it may be the case where, like in 2014, Arthur T. is fired and that's when we really see the movement take place."
