Market Basket board votes unanimously to remove Arthur T. Demoulas as President and CEO

The mediation was not successful.

Here is the full statement from Jay K. Hachigian, Chair of the Market Basket Board, regarding the removal of Arthur T. Demoulas on Tuesday:

“Despite extensive efforts by the Board and Mr. Demoulas to come to terms, the mediation was not successful. The Market Basket Board late yesterday voted unanimously to remove Arthur T. Demoulas as President and CEO of Market Basket. The Board has filed an action in the Delaware Court of Chancery in connection with the removal.

The Board met with Mr. Demoulas on Sept. 3 in a confidential mediation in Delaware before former Vice Chancellor Joseph Slights III and continued the mediation via video conference on Sept. 9. The parties agreed not to comment publicly during that time.

We assure our valued associates and customers that, as we have demonstrated over the past several months, Market Basket will not change its operations, profit-sharing, bonuses or culture, and will continue to offer the best groceries at the lowest prices anywhere in New England—well into the future.”

According to NBC Boston, Market Basket has been embroiled in a high-profile boardroom battle involving Demoulas, who was placed on administrative leave in May amid disputes over succession planning and control of the company.

The conflict has pitted Demoulas against his three sisters, who control a majority stake and the board, leading to the ousting of key allies like board member Bill Shea on August 18 and earlier firings of executives Joe Schmidt and Tom Gordon.

The board accused the fired executives of trespassing at stores and headquarters, securing a court-ordered restraining order on August 14 to bar them from company properties.

Demoulas has accused the board of silencing employees and attempting a hostile takeover, while the sisters proposed an employee stock ownership plan to resolve the feud and ensure long-term stability.

Despite the turmoil, Market Basket maintains strong popularity for its affordable pricing.

Foot traffic data shows steady visits though the feud has led to mixed sentiments on social media, including praise for customer service and calls for boycotts echoing 2014. Overall, loyalty remains high, but the ongoing saga could test it if unresolved.

Don’t be surprised if a lawsuit is filed in the coming days.