Family Feud

Arthur T. Demoulas

The story of a New England supermarket chain normally wouldn't garner much attention outside of the region where they do business.   In this case, the dysfunctional family drama unfolding in Massachusetts, New Hampshire and Maine with the seventy store Demoulas Market Basket chain provides some compelling reasons for all Americans to pay attention.   In a business dominated by grocery chains often owned by foreign companies (Stop & Shop, Shaw's, Hannaford), the Demoulas family has carved out a healthy share in a very competitive environment.   Now, what amounts to a family squabble threatens to pull this independent company apart.   Arthur T. Demoulas had been a highly popular CEO with workers because of his benevolent and arguably enlightened attitude toward company associates through good times and bad.   That did not please his cousin Arthur S. Demoulas and others on the board of directors who controlled the majority of shares, so they unseated him.   

This did not sit well with workers, store managers and, most importantly, customers.   Business has been down by over 90%, but the board and the management company they brought in has reacted with stubbornness and intimidation.   Meanwhile, customers and workers continue to stay away while store managers show up with nothing to do.   They want "Artie T" back and hope the board will accept his offer to buy them out.   Rumors persist of a possible sale to one of those international holding companies that may step in and dissolve Market Basket entirely.   This has been a successful company that now faces the scrap heap of retail history unless Artie T returns.   It serves as a reminder of how American business has shifted to totally focus on shareholders profits over any other community concerns.   The loyal customers, associates, store managers and even the community as a whole are stakeholders if not stockholders.   Somehow that concept has been forgotten by a few greedy and petty people. 

UPDATE 8/28/14:   We are getting word of an agreement to sell the company to Artie T.   Let's hope this works out as customers, associates and managers return to the stores.   I can't help but think this would have gone differently without the media, consumer and middle management attention.